Labour Court Database __________________________________________________________________________________ File Number: CD93524 Case Number: LCR14263 Section / Act: S26(1) Parties: MONAGHAN MUSHROOMS - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
SUBJECT: 1. Dispute concerning the payment of the 2nd and 3rd phases of the Programme for Economic and Social Progress (P.E.S.P.).
Recommendation:
Having fully considered all of the issues raised by the parties in
their oral and written submissions the Court recommends:
1. That the Company implement the 3rd phase of PESP with effect
from the 1st January, 1994.
2. That the parties commence immediate discussions on the
Company proposals and seek to reach agreement as quickly as
possible.
3. That on successful completion of the negotiations the
Company make payment of the arrears of 2nd phase of PESP.
The Court so recommends.
Division: MrMcGrath Mr Keogh Mr Walsh
Text of Document__________________________________________________________________
CD93524 RECOMMENDATION NO. LCR14263
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1) INDUSTRIAL RELATIONS ACT, 1990
PARTIES: MONAGHAN MUSHROOMS
(Represented by Irish Business and Employers Confederation)
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning the payment of the 2nd and 3rd phases of
the Programme for Economic and Social Progress (P.E.S.P.).
BACKGROUND:
2. 1. The Company employs approx. 225 workers. It was
established in order to process mushrooms for the
continental market. The workers were employed on a 5 day
week. During the mid 1980's the Company entered the fresh
mushroom business and this now contributes to 90% of its
output. The fresh mushroom business requires a 7 day week
operation.
2. Phase 2 of the PESP was due on 1st August 1992. By
agreement it was deferred until 1st February, 1993. The
Union claimed the retrospective payment of phase 2 of the
PESP and full payment of phase 3, which it claims is due
from 1st August, 1993. The Company's response is that any
increase in labour costs will only be considered in the
context of the Company's competitive position. The Union
rejected the Company's response.
3. The dispute was referred to the Labour Relations
Commission on 9th February, 1993. A number of conciliation
conferences were held but no agreement was possible. On
10th September, 1993, the dispute was referred to the Labour
Court under section 26(1) of the Industrial Relations Act,
1990. A Labour Court investigation took place in Monaghan
on 7th October, 1993.
UNION'S ARGUMENTS:
3. 1. The rates of pay in the Company are lower than those in
similar type companies in the area. Workers have always
shown a willingness to co-operate with the Company. The
Company is obliged to honour the full terms of the P.E.S.P.
and there is no valid reason why it is withholding payment.
The Union is willing to negotiate changes in working
conditions under clause 3 of the P.E.S.P.
2. The Company is expanding its operation and sales have
increased from #11 million in 1985 to #50 million in 1993
(details supplied). The Company is the largest supplier of
mushrooms to the U.K. market. It produces more than 3 times
that of its local competitors and has a steady and sustained
growth into. The Company is financially able to honour the
full terms of the P.E.S.P.
COMPANY'S ARGUMENTS:
4. 1. The change from mushroom processing to the export of
fresh mushrooms was very costly. Changes in working
practices proved to be more costly for the Company than for
many of its competitors.
2. At the time phase 2 of the PESP was due the Company was
in an uncompetitive situation due to the sterling/interest
rate crisis. Management have been forced to take salary
cuts and a number of employees have been laid off in an
effort to cut costs. Profits have always been reinvested in
the Company but substantial borrowings are still necessary
The Union's insistence on full payment of the PESP can only
worsen the situation and put the future of the Company at
risk.
3. The Court is asked to recommend that the uncompetitive
position in which the Company finds itself in should be
addressed and that further labour costs should not be
considered until such competitive measures have been
secured.
RECOMMENDATION:
Having fully considered all of the issues raised by the parties in
their oral and written submissions the Court recommends:
1. That the Company implement the 3rd phase of PESP with effect
from the 1st January, 1994.
2. That the parties commence immediate discussions on the
Company proposals and seek to reach agreement as quickly as
possible.
3. That on successful completion of the negotiations the
Company make payment of the arrears of 2nd phase of PESP.
The Court so recommends.
~
Signed on behalf of the Labour Court
30th November, 1993. Tom McGrath
C.O.N./A.L. _______________
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Ciaran O'Neill, Court Secretary.