Labour Court Database __________________________________________________________________________________ File Number: CD/91/603 Case Number: LCR13549 Section / Act: S26(1) Parties: J AND Z BLACKMAN LIMITED - and - MARINE PORT AND GENERAL WORKERS UNION |
Claims by the Union on behalf of 14 workers for (1) parity of pay rates with similar employments. (2) increase in service pay. (3) improved sick pay scheme. (4) increase in annual leave.
Recommendation:
5. Having considered the submissions made by the parties the
Court is of the opinion that the claim for an increase in basic
rates is contrary to the terms of the P.E.S.P. The Court does not
therefore recommend concession of this claim. It does recommend
that the proposals as set out by the Industrial Relations Officer
in the letter of 10th September, 1991 be accepted in full
settlement of the Union's claim.
Division: Mr O'Connell Mr McHenry Mr Devine
Text of Document__________________________________________________________________
CD91603 RECOMMENDATION NO. LCR13549
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: J AND Z BLACKMAN LIMITED
(REPRESENTED BY THE FEDERATION OF IRISH EMPLOYERS)
and
MARINE PORT AND GENERAL WORKERS UNION
SUBJECT:
1. Claims by the Union on behalf of 14 workers for
(1) parity of pay rates with similar employments.
(2) increase in service pay.
(3) improved sick pay scheme.
(4) increase in annual leave.
BACKGROUND:
2. The Company is involved in the manufacture of jewellery and
employs approximately 25 workers. The claims were submitted by
the Union in March, 1991 and were rejected by Management on the
grounds that they were of a cost increasing nature and were
precluded under the Programme for Economic and Social Progress
(P.E.S.P.). The issues were referred to the Labour Relations
Commission on the 17th June, 1991. A conciliation conference was
held on the 5th September, 1991. On the 10th September, 1991 a
set of proposals was put to both parties by the Industrial
Relations Officer (Appendix A refers). The proposals were
rejected by the Union. The dispute was referred to the Labour
Court by the Labour Relations Commission on the 14th November,
1991. The Court investigated the dispute on the 24th January,
1992.
Claim 1 Parity of pay rates
UNION'S ARGUMENTS:
3. 1. The current rate of pay obtaining in the Company for
craftworkers is 197.22 per 39 hour week. The average in
comparable employments (details supplied to the Court) is
£216.00 p.w. This indicates that rates of pay in the Company
have fallen well behind over the past ten years. Ten years
ago the pay rates of the workers concerned were superior to
the comparable employments. The Company's argument that the
average wage inclusive of bonus is £266 is not sustainable as
75% of the total bonus is achieved by 4 workers. The
remainder of the workforce attain 25% bonus.
Claim 2: Service pay: The current service pay rates are as
follows:-
5 years - £0.50 pence per week
10 years - £1.00 per week
15 years - £2.00 per week
20 years - £2/80 per week.
The Union's claim is for increase as follows:-
5 years - £1.00
10 years - £2.00
15 years - £3.00
20 years - £4.00
Claim 3 Sick pay: The current sick pay arrangement is for 85% of
basic pay for 4 weeks. The Union's claim is for 4 weeks at 100%
of gross average pay inclusive of bonus earnings, - Social Welfare
Benefit to be returned to the Company.
Claim 4 Holidays: The current holiday entitlement of the workers
concerned is 19 days and has been at that level for some time.
The Union's claim is for one additional day bringing the
entitlement to 20 days which is the national norm.
COMPANY'S ARGUMENTS:
Claim 1 Parity of pay rates
4. 1. The overall pay and benefits package in the Company
(details supplied to the Court) is well ahead of competitors.
Some of the Companies quoted by the Union are not comparable
as some are in the retail business and others have lower
overheads than J and Z Blackman. The hourly rates listed by
the Union are between £5.00 and £5.72 per hour. The Company
has produced figures (details supplied to the Court) which
include basic pay, production bonus, Christmas bonus, and
service pay. These figures show that earnings in the Company
average £6.84 per hour. If items such as sick pay, pension
and death in service benefit are included, the cost (excluding
P.R.S.I.) to the Company is approximately £7.14 per hour. The
Union's claim is a cost increasing one and is precluded by the
terms of P.E.S.P.
Claim 2: Service pay: The Company did not ever give a commitment
that service pay would be adjusted with inflation. This claim is
also precluded under the P.E.S.P.
Claim 3: Holidays: The increase in the holiday allowance is also
of a cost increasing nature and is precluded under the P.E.S.P.
Claim 4: Sick pay: The Company operates a sick pay scheme which
provides for 85% of net basic pay for four weeks. The worker
returns his/her social welfare cheque to the Company. It is not
normal practice for sick pay schemes to provide for payment on the
basic of average earnings. This claim is also a cost increasing
one and is precluded under the P.E.S.P.
RECOMMENDATION:
5. Having considered the submissions made by the parties the
Court is of the opinion that the claim for an increase in basic
rates is contrary to the terms of the P.E.S.P. The Court does not
therefore recommend concession of this claim. It does recommend
that the proposals as set out by the Industrial Relations Officer
in the letter of 10th September, 1991 be accepted in full
settlement of the Union's claim.
~
Signed on behalf of the Labour Court
John O'Connell
____________________
5th February, 1992. Deputy Chairman
T.O'D./J.C.
APPENDIX A
10th September, 1991.
Mr. Gerard Whyte,
Branch Secretary,
Marine Port and General Workers Union,
14, Gardiner Place,
Dublin 1.
Re: J. & Z. BLACKMAN LIMITED/M.P.G.W.U.
Dear Sir/Madam,
I refer to the conciliation conference held on the 15th September,
1991. I wish to confirm that the proposal made by the Industrial
Relations Officer at that conference was as follows:-
Proposal
On the basis that the Union withdraws its claim for parity with
other companies on basic rates, the Company to concede the
following;
(a) Good Friday plus 19 days annual leave in 1992 and thereafter
(b) Service pay of £1 after 5 years
£2 after 10 years
£3 after 15 years
£4 after 20 years from 1st September, 1991.
(c) The sick pay scheme to be altered as:-
100% of basic net pay instead of 85% as heretofore.
This proposal was made on the basis that both parties agreed to
take it back and recommend it for acceptance to their respective
principals. if this is not possible then the proposal
automatically falls.
Yours faithfully,
________________________________
M. Solan
Industrial Relations Officer.