Labour Court Database __________________________________________________________________________________ File Number: CD9468 Case Number: LCR14397 Section / Act: S26(1) Parties: WEXFORD ELECTRONIC LIMITED - and - AMALGAMATED ENGINEERING AND ELECTRICAL UNION;TECHNICAL ENGINEERING AND ELECTRICAL UNION;SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Claim for 3% pay increase under Clause 3 of the Programme for Economic and Social Progress (P.E.S.P.).
Recommendation:
The Court has considered all of the views of the parties as
expressed in their oral and written submissions. The Court
recommends the members agree to the elimination of 2 X 5 minute
breaks and that the Company pay 2% and re-examine the payment in
1995 in the light of Productivity achieved as a consequence of the
change.
Division: MrMcGrath Mr McHenry Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD9468 RECOMMENDATION NO. LCR14397
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
WEXFORD ELECTRONIC LIMITED
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION)
AND
AMALGAMATED ENGINEERING AND ELECTRICAL UNION
TECHNICAL ENGINEERING AND ELECTRICAL UNION
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Claim for 3% pay increase under Clause 3 of the Programme for
Economic and Social Progress (P.E.S.P.).
BACKGROUND:
2. The Company assembles cable harnesses for the automotive
industry, employing approximately 400 workers. The claim for the
3% pay increase was originally served by the Unions in June, 1992.
The Unions claim that the workers operate in a highly pressurised
work environment and deserve the 3% pay increase. The Company
maintains that it is engaged in a very competitive business and is
unable to pay the 3% pay increase. The Company operate a 5 minute
break every hour for the workers, in addition to tea breaks and
lunch breaks. It indicated that it would be willing to pay a 1%
pay increase for the elimination of two of the 5 minute breaks
each day. The remaining 2% pay increase could be negotiated at a
later date.
The dispute was referred to the Labour Relations Commission and a
conciliation conference took place on 29th November, 1993. At the
hearing the Company increased its offer to a 1% pay increase in
exchange for the elimination of one 5 minute break. The offer was
rejected by the workers and the dispute was referred to the Labour
Court under Section 26(1) of the Industrial Relations Act, 1990,
on 1st February, 1994. A Labour Court hearing took place on 25th
March, 1994.
UNION'S ARGUMENTS:
3. 1. The workers are constantly operating under pressure to
specified standards and are required to manufacture a
specific number of items per hour. The 5 minute breaks are
fatigue breaks and are essential in maintaining high
standards of production. The breaks are also necessary from
a safety point of view.
2. The Company has introduced new technology and work
systems which the workers have accepted without any claims
for increased pay. The basic pay for most of the workers
concerned is #179 per week. This is considerably below the
average industrial wage of #244 per week.
COMPANY'S ARGUMENTS:
4. 1. The market for cable harnesses is exceptionally
competitive worldwide. The automotive industry in general is
in an uncertain situation because of low labour costs in
Eastern Europe. Accordingly, the Company has to keep costs
as low as possible. Part of the cost cutting involved forty
redundancies in November, 1993.
2. Concession to the 3% pay increase will only be granted
in return for increases in productivity. The Company offered
a 1% pay increase for the elimination of one 5 minute break
per day (25 minutes per week). This was rejected by the
Unions. The offer still stands. The Company is willing to
negotiate on the remaining 2%.
3. Conceding a 3% pay increase without a corresponding
increase in productivity would endanger jobs in the Company.
RECOMMENDATION:
The Court has considered all of the views of the parties as
expressed in their oral and written submissions. The Court
recommends the members agree to the elimination of 2 X 5 minute
breaks and that the Company pay 2% and re-examine the payment in
1995 in the light of Productivity achieved as a consequence of the
change.
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Signed on behalf of the Labour Court
20th April, 1994 Tom McGrath
C.O.N./M.M. _______________
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Ciaran O'Neill, Court Secretary.