Labour Court Database __________________________________________________________________________________ File Number: CD92542 Case Number: LCR13858 Section / Act: S26(1) Parties: GAELIC SEAFOODS LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
A dispute concerning the payment of the Second Phase and Clause 3 of the Programme for Economic and Social Progress (PESP).
Recommendation:
5. Having considered all the circumstances of the Company and its
workers, the Court recommends that the Company pay the terms,
including arrears, of phase 2 of the P.E.S.P. on 1/12/92. The
Court, having regard to the trading and financial circumstances of
the Company, does not recommend concession of the Union claim in
regard to payment under Clause 3 of the P.E.S.P.
Division: Mr Heffernan Mr Brennan Mr Walsh
Text of Document__________________________________________________________________
CD92542 RECOMMENDATION NO. LCR13858
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1) INDUSTRIAL RELATION ACT, 1990
PARTIES: GAELIC SEAFOODS LIMITED
(Represented by the Federation of Irish Employers)
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. A dispute concerning the payment of the Second Phase and
Clause 3 of the Programme for Economic and Social Progress
(PESP).
BACKGROUND:
2. 1. Gaelic Seafoods is a holding company which controls
Bradan Mhara (salmon farm) and Carrolls Seafoods (smoking
plant). In 1991 the Company implemented the first phase of
the PESP and outlined difficulties it was experiencing at the
time.
2. The Company is pleading inability to pay the second
phase of PESP because it has accumulated losses of #26m and
has lost #1 1/2m since the start of the current financial year
in April. It sought deferment of the claim till the end of
the financial year. The Union was not convinced of the
Company's financial difficulties and pressed for a definite
date for payment of this second phase.
3. A conciliation conference took place on the 6th August,
1992 but agreement could not be reached. The issue was
referred to the Labour Court on the 8th September, 1992 and
the Court investigated the matter on the 30th October, 1992 in
Galway.
UNION'S ARGUMENTS:
3. 1. At conciliation the Company accepted that this money was
due to the employees and said that it would pay it when in a
position to do so. This is not acceptable.
2. The PESP provides for minimal improvements in the terms
and conditions of workers. Many companies throughout the
country have paid the PESP and to date a total of 248
employers covering a total of 49,524 workers have agreed to
pay the 3% under Clause 3 of the PESP.
3. The workers have given full co-operation and flexibility
to the Company.
4. A number of other companies in the area have paid the
additional 3% on top of the basic increase.
COMPANY'S ARGUMENTS:
4. 1. The Company has cumulative losses of #27.5m since 1987
and last year alone it lost #5.5m.
2. In 1991 the mortality rate of smolts was over 50%. This
further reduces the financial strength of the Company.
3. A clear indication of the farm crop which could be taken
from the sea will not be known until after Christmas. Any
increases prior to that could prove disastrous.
4. A number of similar farms have closed recently and the
price of salmon is the same as in 1991.
RECOMMENDATION:
5. Having considered all the circumstances of the Company and its
workers, the Court recommends that the Company pay the terms,
including arrears, of phase 2 of the P.E.S.P. on 1/12/92. The
Court, having regard to the trading and financial circumstances of
the Company, does not recommend concession of the Union claim in
regard to payment under Clause 3 of the P.E.S.P.
~
Signed on behalf of the Labour Court
Kevin Heffernan
17th November, 1992 ---------------
P.O'C/U.S. Chairman
NOTE:
ENQUIRIES CONCERNING THIS RECOMMENDATION SHOULD BE ADDRESSED TO
MR PAUL O'CONNOR, COURT SECRETARY.