Labour Court Database __________________________________________________________________________________ File Number: CD9429 Case Number: LCR14393 Section / Act: S26(1) Parties: IRISH FOREST PRODUCTS LIMITED (MOUNTRATH) - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Claim for implementation of Clause 1, Phase 3 of the Programme for Economic and Social Progress (P.E.S.P.).
Recommendation:
Having considered the submissions of the parties and the oral
evidence presented at the hearing, the Court is satisfied that the
3rd phase (3.75%) should be applied to the workers in this case.
Because of the financial position of the Company, however, the
increase should be applied with effect from the 1st January, 1994.
The parties should meet before the 1st May, 1994 to agree on the
date for payment of the arrears (i.e. payment from 1/8/93 -
31/12/93). In any event, the arrears should be paid within the
calendar year 1994.
Division: Mr Heffernan Mr Brennan Mr Rorke
Text of Document__________________________________________________________________
CD9429 RECOMMENDATION NO. LCR14393
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
IRISH FOREST PRODUCTS LIMITED (MOUNTRATH)
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Claim for implementation of Clause 1, Phase 3 of the
Programme for Economic and Social Progress (P.E.S.P.).
BACKGROUND:
2. The Company is part of the Woodfab Group, which consists of
three timber-processing plants, located at Aughrim, Fermoy and
Mountrath. The claim, which is on behalf of 37 workers in
Mountrath, is for an increase of 3.75% in basic pay under Clause
1, Phase 3 of the P.E.S.P., from the 1st August, 1993. The claim
was rejected on the grounds that the Company cannot afford to
incur additional costs. The dispute was the subject of a
conciliation conference on the 3rd November, 1993, under the
auspices of the Labour Relations Commission, at which agreement
was not reached. The dispute was referred to the Labour Court on
the 14th of January, 1994, in accordance with Section 26(1) of the
Industrial Relations Act, 1990. The Court investigated the
dispute, in Portlaoise, on the 22nd of March, 1994.
UNION'S ARGUMENTS:
3. 1. The basic rates paid to Mountrath workers compare poorly
with rates paid to workers engaged in similar work in the
Fermoy and Aughrim plants (details supplied to the Court).
2. Despite the difference in rates of pay, the Mountrath
workers continue to improve standards and increase
productivity, as evidenced by the increase in output from
37.1 cubic metres per day in 1991 to 45 cubic metres per day,
at present. Yield is also increased, from 43%-44% to 51%.
These improvements have been brought about despite the recent
decrease in the number of production workers from 50 to under
40.
3. The Company has claimed 'inability to pay' the Phase 3
increase in all three of its plants. However, the Labour
Court, in LCR14281, recommended the payment of the Phase 1
Clause 3, 3.75% increase in the Fermoy plant. This
recommendation has been implemented by the Company. The
workers in the Mountrath plant should be no less favourably
treated.
COMPANY'S ARGUMENTS:
4. 1. Over the past number of years, the plant has sustained
substantial losses, primarily due to the high cost of raw
materials and also due to the low market price for processed
timber. In addition, the Labour cost in the plant is high,
relative to the industry in general. Wages per metre cubed
of timber sold are #3 above the industry average.
2. The annual Labour cost in the Mountrath plant is
#335,000. The cost of the claim would amount to #13,000 per
annum. During the currency of the P.E.S.P., the plant has
sustained losses of #750,000. Any increase in losses would
threaten the viability of the plant.
RECOMMENDATION:
Having considered the submissions of the parties and the oral
evidence presented at the hearing, the Court is satisfied that the
3rd phase (3.75%) should be applied to the workers in this case.
Because of the financial position of the Company, however, the
increase should be applied with effect from the 1st January, 1994.
The parties should meet before the 1st May, 1994 to agree on the
date for payment of the arrears (i.e. payment from 1/8/93 -
31/12/93). In any event, the arrears should be paid within the
calendar year 1994.
~
Signed on behalf of the Labour Court
11th April, 1994 Kevin Heffernan
M.K./M.M. _______________
Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Michael Keegan, Court Secretary.