Labour Court Database __________________________________________________________________________________ File Number: CD92541 Case Number: LCR13837 Section / Act: S26(1) Parties: WATERVILLE MINK FARM LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Claim by the Union for the implementation of a 39 hour week and payment of Phases 1 and 2 of the Programme for Economic and Social Progress (P.E.S.P.).
Recommendation:
5. Having considered the issues and the submissions of the
parties the Court considers that in view of the present
circumstances of the Company the implementation of the Phases of
the Programme for Economic and Social Progress should be deferred
to 31st March, 1993 when the circumstances of the Company will be
reviewed and arrangements made for the implementation of the
Phases of the P.E.S.P.
The Company on acceptance of this Recommendation should implement
the 39 hour week.
The Court so recommends.
Division: MrMcGrath Mr McHenry Mr Rorke
Text of Document__________________________________________________________________
CD92541 RECOMMENDATION NO. LCR13837
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: WATERVILLE MINK FARM LIMITED
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Claim by the Union for the implementation of a 39 hour week
and payment of Phases 1 and 2 of the Programme for Economic and
Social Progress (P.E.S.P.).
BACKGROUND:
2. The Company produces mink pelts mainly for export. It employs
10 full-time and 20 part-time workers. Workers are paid a rate of
between #152 to #162 per week, for a 40 hour week. An attendance
bonus of #2.40 also applies. The Union's claim is for the
introduction of the 39 hour week as provided for under the terms
of the Programme for National Recovery (P.N.R.) and payment of
Phases 1 and 2 of the P.E.S.P. Management rejected the claim on
the grounds of financial difficulties. The issue was referred to
the Labour Relations Commission on the 31st July, 1991.
Conciliation conferences were held on the 1st April and 20th
August, 1992, but no agreement was reached. The dispute was
referred to the Labour Court by the Labour Relations Commission on
the 8th September, 1992. A Court hearing was held in Tralee on
the 13th October, 1992.
UNION'S ARGUMENTS:
3. 1. The current wage rates of the workers concerned are modest
and do not compare favourably with other industries in the
region. In June, 1991 when the Union first made a claim for
the introduction of a 39 hour week and the increases due under
the P.E.S.P., the Company made no offer. The pay terms of the
P.E.S.P. are moderate and specifically designed to enable
companies to survive. The cost of implementing both the one
hour reduction and Phases 1 and 2 of P.E.S.P. are not
significant. The workers concerned have contributed to the
success of the Company over the years; the Company should
reciprocate by paying the increases due and also introduce a
39 hour week forthwith
COMPANY'S ARGUMENTS:
4. 1. There is an economic recession in world markets and
production of mink pelts has declined significantly since
1986. The Company has sustained substantial losses in each of
the past four years (details supplied to the Court). Sixty
per cent (60%) of last year's crop of pelts are still unsold.
2. Although the Company has not paid Phases 1 and 2 of the
P.E.S.P. it still pays wage rates in excess of the
Agricultural J.L.C. rates. The Company, in order to survive,
must remain competitive. It has been forced to reduce overall
costs and it is essential that wage costs are reduced if the
Company is to remain in operation. The Company must have a
derogation both from paying the terms of the P.E.S.P. and also
reducing the working week by one hour.
RECOMMENDATION:
5. Having considered the issues and the submissions of the
parties the Court considers that in view of the present
circumstances of the Company the implementation of the Phases of
the Programme for Economic and Social Progress should be deferred
to 31st March, 1993 when the circumstances of the Company will be
reviewed and arrangements made for the implementation of the
Phases of the P.E.S.P.
The Company on acceptance of this Recommendation should implement
the 39 hour week.
The Court so recommends.
~
Signed on behalf of the Labour Court
Tom McGrath
-------------------------------
5th November, 1992. Deputy Chairman
T.O'D./J.C.
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Tom O'Dea, Court Secretary.