Labour Court Database __________________________________________________________________________________ File Number: CD936 Case Number: LCR14011 Section / Act: S26(1) Parties: COW AND GATE LIMITED - and - MANUFACTURING, SCIENCE, FINANCE (MSF |
A dispute concerning Clause 3 (Local Bargaining Clause) of the Programme for Economic and Social Progress. (P.E.S.P.).
Recommendation:
The Court having considered the submissions of the parties and
given all the circumstances of this case recommends the parties
consider the provisions of Clause 3 of the PESP with a view to
seeking an acceptable arrangement on the expiry of the P.E.S.P.
Division: MrMcGrath Mr Keogh Mr Rorke
Text of Document__________________________________________________________________
CD936 RECOMMENDATION NO. LCR14011
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: COW AND GATE LIMITED
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION)
AND
MANUFACTURING, SCIENCE, FINANCE (MSF)
SUBJECT:
1. A dispute concerning Clause 3 (Local Bargaining Clause) of
the Programme for Economic and Social Progress. (P.E.S.P.).
BACKGROUND:
2. 1. The Company, a subsidiary of Nutricia in Holland,
manufactures baby food and employs 157 people in its Wexford
plant.
2. In August, 1991 the Labour Court made an extensive
recommendation on restructuring of wage scales in the Company
(LCR13350). In implementing this recommendation the Company
imposed a number of conditions, one of which was that there
would be no special increase of 3% under PESP. The Court was
consulted and its clarification stated that:
"claims under this clause remain to be dealt with within
the terms set out in the Programme of which it is part".
3. The dispute was referred to the Labour Relations
Commission on the 21st July, 1992. A conciliation conference
took place on the 25th November, 1992 at which agreement
could not be reached. The issue was referred by the Labour
Relations Commission to the Labour Court on the 7th January,
1993 and the Court investigated the matter on the 19th
January, 1993.
UNION'S ARGUMENTS:
3. 1. The Labour Court, in its clarification, stated that
claims under Clause 3 of PESP remained to be dealt with
within the terms set out in the Programme.
2. The vast majority of private sector companies have paid
the 3% in one form or another.
3. The Company is a profitable concern.
4. The increases granted under the Labour Court
recommendation (LCR13350) were substantially self-financing.
5. The productivity in this company has increased
enormously.
COMPANY'S ARGUMENTS:
4. 1. The Company has undergone a reorganisation in recent
times which has involved substantial increases in pay under
headings of grading, bonus payments and additional increases.
2. The Company has observed the terms of the PESP in spirit
as well as in relation to the content and intention of Clause
1 and 3.
3. The Company rejects the claim that there is an
outstanding obligation under the local bargaining clause.
4. Any further upward adjustment of pay levels will impact
on the Company's relative cost position and thereby have
implications for the Wexford operation.
RECOMMENDATION:
The Court having considered the submissions of the parties and
given all the circumstances of this case recommends the parties
consider the provisions of Clause 3 of the PESP with a view to
seeking an acceptable arrangement on the expiry of the P.E.S.P.
~
Signed on behalf of the Labour Court
25th March, 1993 Tom McGrath
P.O.C./M.H. ____________________________________
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Paul O'Connor.