Labour Court Database __________________________________________________________________________________ File Number: CD93634 Case Number: LCR14320 Section / Act: S26(1) Parties: DAWN DAIRIES - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Claim for a 3% wage increase as provided for under Clause 3 of the Programme for Economic and Social Progress (PESP).
Recommendation:
5. The Court having considered the submissions of the parties
makes the following recommendation.
(a) That the 3% for drivers both commission and
non-commission be paid as a fixed payment not part of
basic.
(b) That the Company's proposal to cease cash payment and
the Company provision re clocking in/out be accepted.
(c) That the 3% be applied to dairy workers on basic pay.
(d) That the 3% be implemented retrospectively to the date
of the first conciliation conference.
(e) Both management and union review all aspects of the pay
structure, including the commission incentive for
commission drivers, in the early part of 1994.
Division: Mr Heffernan Mr Keogh Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD93634 RECOMMENDATION NO. LCR14320
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1)
INDUSTRIAL RELATIONS ACT, 1990
PARTIES: DAWN DAIRIES
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Claim for a 3% wage increase as provided for under Clause 3 of
the Programme for Economic and Social Progress (PESP).
BACKGROUND:
2. 1. Dawn Dairies, Moate, is part of the dairies division of
the Kerry Group. It is involved in the procurement,
processing, sale and distribution of liquid milk and
the sale of allied products. The Union sought the
implementation of Clause 3 of P.E.S.P. from 1st July,
1992. A number of local meetings took place but no
progress was made.
2. The issue was referred to the Labour Relations
Commission and conciliation conferences were held on the
29th April, 1993 and 24th August, 1993. The Company put
forward its final offer as follows:-
(a) Commission Drivers: Propose 3% increase
(equivalent to 3% of the basic) onto the
commission.
(b) Non-Commission Drivers: Pay the equivalent of
3% of basic e.g. on the luncheon voucher.
(c) Dairy Workers: Increase basic 3%. Staff
should clock in/out at lunch time.
(d) Postpone review of commission structure due
since 1st July, 1993.
(e) Introduce 'cashless' pay.
(f) Any increase to be paid from date of
acceptance.
3. Agreement could not be reached and the issue was
referred by the Labour Relations Commission to the
Labour Court on the 8th November, 1993. The Court
investigated the matter on the 14th December, 1993.
UNION'S ARGUMENTS:
3. 1. The Company's offer is not in line with the spirit or
the wording of Clause 3 of the P.E.S.P.
2. The Company's offer is divisive. It provides for an
increase in basic for some employees and not for others.
3. The dairy can afford the increase.
4. The rates of pay in Moate are the most competitive in
the Group and in the liquid milk sector.
5. Most of the Company's competitors have paid this
increase.
6. The proposed increase for commission drivers is
unacceptable because it is not on the basic and,
therefore, does not carry over to pension or future wage
increases.
7. The proposed method of paying the increase to
non-commission drivers is unacceptable as it proposes
payment on the luncheon voucher and not on basic.
COMPANY'S ARGUMENTS:
4. 1. The devaluation of the green pound in early 1993 has had
a major impact on costs.
2. The pattern of sales has changed away from the door to
door deliveries to the wholesale and multiple sector
where margins are lower. There is no scope for an
increase in prices in the current climate.
3. The Company is not exceptional in the context of Clause
3 of P.E.S.P.
4. The proposals put forward at conciliation are a positive
response to the Union's claim.
RECOMMENDATION:
5. The Court having considered the submissions of the parties
makes the following recommendation.
(a) That the 3% for drivers both commission and
non-commission be paid as a fixed payment not part of
basic.
(b) That the Company's proposal to cease cash payment and
the Company provision re clocking in/out be accepted.
(c) That the 3% be applied to dairy workers on basic pay.
(d) That the 3% be implemented retrospectively to the date
of the first conciliation conference.
(e) Both management and union review all aspects of the pay
structure, including the commission incentive for
commission drivers, in the early part of 1994.
~
Signed on behalf of the Labour Court
Kevin Heffernan
23rd December, 1993 ---------------
P O'C/U.S. Chairman
NOTE:
Enquiries concerned this Recommendation should be addressed to
Mr Paul O'Connor, Court Secretary.