Labour Court Database __________________________________________________________________________________ File Number: CD93650 Case Number: LCR14331 Section / Act: S26(1) Parties: UNITED CINEMAS INTERNATIONAL - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning the payment of a 3% increase under the terms of Clause 3 (local bargaining) of the Programme for Economic and Social Progress (P.E.S.P.).
Recommendation:
The programme for Economic and Social Progress provides in Clause
3 that employers and trade unions in certain circumstances may
negotiate further changes in rates of pay / and on conditions of
employment which may be for an amount up to but not exceeding 3%.
In this case the Court recommends that the parties seek to agree
acceptable arrangements in accordance with the provisions of the
Clause which will prove to be beneficial to both the workers and
the Company.
The Court so recommends.
Division: MrMcGrath Mr McHenry Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD93650 RECOMMENDATION NO. LCR14331
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
UNITED CINEMAS INTERNATIONAL
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION)
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. 1. Dispute concerning the payment of a 3% increase under
the terms of Clause 3 (local bargaining) of the Programme for
Economic and Social Progress (P.E.S.P.).
BACKGROUND:
2. 1. The Company operates 2 multiplex cinemas in Dublin
(Tallagh and Coolock) and it employs 121 workers. The final
phase of the P.E.S.P. was paid by the Company in December,
1992. Prior to the payment of the final phase, the Union
made a claim on the Company for the payment of a 3% increase
under the terms of Clause 3 of the P.E.S.P. The claim was
rejected by the Company.
2. The dispute was referred to the Labour Relations
Commission and a conciliation conference was held on 9th
February, 1993. The Union sought the full 3% increase
allowable under Clause 3. The Company rejected the claim on
the basis that it was loss making and not the kind of
"exceptional" employer envisaged by the P.E.S.P.
3. No basis for settlement was found at the Labour
Relations Commission and the claim was referred to the Labour
Court under Section 26(1) of the Industrial Relations Act,
1990 on 17th November, 1993. A Labour Court investigation
took place on 13th January, 1994 (the earliest date suitable
to both parties).
UNION'S ARGUMENTS:
3. 1. The Company opened its first multiplex cinema in
November, 1990 under an Agreement which allowed the Company
more flexibility of operation (details supplied) than any of
the long term cinema operations. The Company also had
flexibility regarding pay. The workers earn much less than
staff in other major cinemas (details supplied).
2. The 3% increase has already been conceded by other major
cinemas for concessions which fall far short of those which
the Company already enjoys. The workers have given the
Company productively and flexibility which is unprecedented
in the industry (details supplied). In return, the workers
receive less pay than the norm for the industry. The 3%
increase should be awarded in the interests of continuing
flexibility and of maintaining the high level of productivity
and competitiveness already enjoyed by the Company.
COMPANY'S ARGUMENTS:
4. 1. In addition to the normal P.E.S.P. increases, the
Company operates a "star incentive bonus" scheme and service
pay. In real terms the workers have received increases of
13.4% inclusive of the P.E.S.P. since December, 1991 (details
supplied). Through its service pay and "star" programme, the
Company is paying in excess of 3% on top of the basic
P.E.S.P. requirements.
2. The Company is loss making and has suffered in recent
years because of the high cost of servicing its debts. In
order to reduce losses, the Company must remain competitive.
It cannot be defined as exceptional under any circumstances.
For the future, the Company is reliant on good product for
its business's success. There is no guarantees for the year
ahead and the world cup soccer championship will seriously
affect business. The Company cannot afford a further
increase in costs.
RECOMMENDATION:
The programme for Economic and Social Progress provides in Clause
3 that employers and trade unions in certain circumstances may
negotiate further changes in rates of pay / and on conditions of
employment which may be for an amount up to but not exceeding 3%.
In this case the Court recommends that the parties seek to agree
acceptable arrangements in accordance with the provisions of the
Clause which will prove to be beneficial to both the workers and
the Company.
The Court so recommends.
~
Signed on behalf of the Labour Court
11st February, 1994. Tom McGrath
J.F./A.L. _______________
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Jerome Forde, Court Secretary.