Labour Court Database __________________________________________________________________________________ File Number: CD9395 Case Number: LCR14061 Section / Act: S26(1) Parties: CAMPBELL CATERING LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Clause 3 of Programme for Economic and Social Progress (P.E.S.P.).
Recommendation:
5. Having considered the submissions from the parties and noting
in particular the Company's position vis a vis its clients the
Court recommends as an equitable way of dealing with the Union's
claim that the 3% be phased in as follows:
1.50% from 1/6/93
and a further
1.50% from 1/12/93.
In making this recommendation the Court has taken into account the
Union's stated willingness to discuss the implication of its
implementation with the Company.
The Court wishes to add that it considers that the Company would
be justified in seeking to have the cost of the above increase
covered in the course of the pending negotiations with their
clients on the review of the contracts.
Division: Ms Owens Mr Brennan Mr Walsh
Text of Document__________________________________________________________________
CD9395 RECOMMENDATION NO. LCR14061
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: CAMPBELL CATERING LIMITED
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Clause 3 of Programme for Economic and Social Progress
(P.E.S.P.).
BACKGROUND:
2. The Company is involved in the contract catering industry.
Within the Dublin area it is responsible for the running of
approximately 50 catering units in various employments. The
workers concerned are employed by the Company in the Dublin area
as catering assistants, chefs, bar assistants and storepersons.
In May, 1992, the Union submitted a claim on behalf of the workers
concerned for the implementation of a 3% increase under Clause 3
of P.E.S.P. The Company rejected the claim.
The Union referred the matter to the Labour Relations Commission.
Conciliation conferences were held on 6th November, 1992 and 20th
November, 1992, but no progress was made and the matter was
referred to the Labour Court on 2nd February, 1993. The Labour
Court hearing took place on 23rd February, 1993.
UNION'S ARGUMENTS:
3. 1. The Company and its clients are aware of the terms of the
P.E.S.P. and should have made provisions when making contracts
for all wage increases due under the P.E.S.P.
2. The rates of pay of the workers concerned are
substantially lower than the average industrial wage.
3. If the Company fail to implement the increase it could
affect the morale of the workers concerned, particularly in
situations where client companies have implemented the terms
of Clause 3.
COMPANY'S ARGUMENTS:
4. 1. The contract catering industry is going through a
recession. The Company is not in a position to make a
concession which will contribute to further deterioration in
its business.
2. The Company is under pressure from its clients to reduce
the level of subsidy they pay for the catering service.
3. The labour costs incurred in providing the service
represent a substantial element of the client's subsidy and
ranges from between 80 to 100 per cent.
4. Concession of the Union's claim would put jobs at risk as
any increases to the workers concerned would have to be passed
on to the clients.
5. No exceptionable circumstances exist to justify concession
of the Union's claim.
RECOMMENDATION:
5. Having considered the submissions from the parties and noting
in particular the Company's position vis a vis its clients the
Court recommends as an equitable way of dealing with the Union's
claim that the 3% be phased in as follows:
1.50% from 1/6/93
and a further
1.50% from 1/12/93.
In making this recommendation the Court has taken into account the
Union's stated willingness to discuss the implication of its
implementation with the Company.
The Court wishes to add that it considers that the Company would
be justified in seeking to have the cost of the above increase
covered in the course of the pending negotiations with their
clients on the review of the contracts.
~
Signed on behalf of the Labour Court
Evelyn Owens
___________________
3rd May, 1993. Deputy Chairman
F.B./J.C.
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Fran Brennan, Court Secretary.