Labour Court Database __________________________________________________________________________________ File Number: CD93478 Case Number: LCR14259 Section / Act: S26(1) Parties: KROMBERG AND SCHUBERT IRELAND LIMITED - and - SERVICE INDUSTRIAL PROFESSIONAL AND TECHNICAL UNION |
Claim for a 3% wage increase as provided for under Clause 3 of the Programme for Economic and Social Progress (P.E.S.P.).
Recommendation:
5. In view of the information submitted to the Court as to the
position in the industry and the previous commitment given to the
Union, the Court recommends that the parties agree to postpone
discussions and or negotiations on Clause 3 for a period of 6
months and that the matter be then reviewed in light of the then
position in the Company.
Division: Ms Owens Mr McHenry Mr Rorke
Text of Document__________________________________________________________________
CD93478 RECOMMENDATION NO. LCR14259
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1)
INDUSTRIAL RELATIONS ACT, 1990
PARTIES: KROMBERG AND SCHUBERT IRELAND LIMITED
(Represented by the Irish Business and Employers Confederation)
AND
SERVICE INDUSTRIAL PROFESSIONAL AND TECHNICAL UNION
SUBJECT:
1. Claim for a 3% wage increase as provided for under Clause 3 of
the Programme for Economic and Social Progress (P.E.S.P.).
BACKGROUND:
2. 1. The Company manufactures cable harness products for the
automotive industry and employs approximately 930 people in
Waterford. In 1992, the Company saw the need to change its
approach to manufacturing its products by traditional methods
to world class methods. In July, 1992, the Union agreed with
the Company's proposals for change. The terms of these
proposals were to be implemented by December, 1994.
2. The Union set out their claim for the implementation of
Clause 3 of P.E.S.P. in the final agreement covering the
implementation of change. The Company agreed to talk to the
Union in the Autumn of 1992. The Union raised its claim again
for the implementation of Clause 3 of P.E.S.P. early in 1993.
The Company refused to implement any increase under Clause 3
of P.E.S.P.
3. The dispute was referred to the Labour Relations
Commission and a conciliation conference took place on the
13th July, 1993. Agreement could not be reached and the issue
was referred by the Labour Relations Commission to the Labour
Court on the 12th August, 1993. The Court investigated the
matter on the 3rd November, 1993 in Waterford.
UNION'S ARGUMENTS:
3. 1. The Company has breached its agreement with the Union to
conclude negotiations before the end of October, 1992.
2. In failing to negotiate the 3% local bargaining clause,
the Company is ignoring the major contribution made by the
workers.
3. The workers feel let down by the Company's response to
this claim.
COMPANY'S ARGUMENTS:
4. 1. The Company's business - the component supply sector and
the automotive industry - are in a state of contraction and
instability.
2. Increases in costs are not recoverable and the
persistent pressure is to reduce costs.
3. The Company has implemented all three phases of P.E.S.P.
and has implemented a pension scheme under Clause 4 from 1st
July, 1993.
4. Labour costs represent 34.6% of total sales/costs.
Increased costs will cause job losses.
5. Clause 3 of the P.E.S.P. is stated in terms which
acknowledge that such increases will not be universally
applied.
RECOMMENDATION:
5. In view of the information submitted to the Court as to the
position in the industry and the previous commitment given to the
Union, the Court recommends that the parties agree to postpone
discussions and or negotiations on Clause 3 for a period of 6
months and that the matter be then reviewed in light of the then
position in the Company.
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Signed on behalf of the Labour Court
26th November, 1993 Evelyn Owens
P O'C/U.S. ------------
Deputy Chairperson
NOTE:
Enquiries concerning this Recommendation should be addressed to
Mr Paul O'Connor, Court Secretary.