Labour Court Database __________________________________________________________________________________ File Number: CD94468 Case Number: LCR14627 Section / Act: S26(1) Parties: CUSTOM FOODS LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Claim by the Union for an increase in basic pay rates.
Recommendation:
The Court considers, having heard the views of all the parties,
that there is merit in the case of the Union to seek to improve
the pay rates. However, given the terms of the P.C.W. the Court
considers that it is inappropriate to pursue this issue at this
time.
Division: Mr McGrath Mr Keogh Mr Walsh
Text of Document__________________________________________________________________
CD94468 RECOMMENDATION NO. LCR14627
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
CUSTOM FOODS LIMITED
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION)
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Claim by the Union for an increase in basic pay rates.
BACKGROUND:
2. 1. The Company is part of the Heinz Corporation and
manufactures pizzas and related products for export. It
employs 200 workers and commenced business in 1993. The
Company and Union signed an agreement in 1993 which
included a provision that wages would be reviewed in
April, 1994. Early in 1994 the Union, on behalf of the
workers concerned, sought a substantial increase in
basic pay rates. Management offered a 2% increase as
from 1st April, 1994 in accordance with the provisions
of the Programme for Competitiveness and Work (PCW).
This offer was rejected by the Union.
2. The dispute was referred to the Labour Relations
Commission and a conciliation conference was held in
August, 1994. As no agreement was reached the dispute
was referred to the Labour Court on the 6th September,
1994. The Court investigated the dispute in Dundalk on
the 15th November, 1994.
UNION'S ARGUMENTS:
3. 1. The current basic wage of the workers concerned is #144
per week. This is a very low rate of pay, and the
workers cannot maintain a reasonable standard of living.
Comparable companies pay their workers substantially
higher pay rates. (Details supplied to the Court).
2. The Company has recently paid a 4% increase to clerical
administrative and management staff who already enjoy
considerably higher wages than the workers concerned.
COMPANY'S ARGUMENTS:
4. 1. The Union's claim is cost increasing and in breach of
Clause 6 of the PCW. The Company/Union agreement
provides that rates would be reviewed in April, 1994.
This did not imply that those rates would be reviewed
outside the terms of the PCW. The Company at all times,
stated that it would apply the terms of any national
agreements.
2. The clerical, administrative and managerial staff had
not received an increase for eighteen months and had
also worked substantial extra hours without payment.
3. The Company is operating in a very competitive market.
Its two comparator companies have lower operating costs.
While their basic pay rates are similar to those in
Custom Foods Limited both have lower shift premia and
fewer breaks.
RECOMMENDATION:
The Court considers, having heard the views of all the parties,
that there is merit in the case of the Union to seek to improve
the pay rates. However, given the terms of the P.C.W. the Court
considers that it is inappropriate to pursue this issue at this
time.
~
Signed on behalf of the Labour Court
16th December, 1994 Tom McGrath
T.O'D./D.T. _______________
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Tom O'Dea, Court Secretary.