Labour Court Database __________________________________________________________________________________ File Number: CD93602 Case Number: LCR14309 Section / Act: S26(1) Parties: IRISH SOFT DRINKS LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Claim for payment of Phase 3 of the P.E.S.P.
Recommendation:
The Court, having considered the views of the parties as expressed
in their oral and written submissions, believes that the workers
could expect the basic terms of the P.E.S.P. to be implemented on
the due dates.
The Court is, however, cognizant of the financial constraints
under which the Company is currently working.
In all the circumstances, the Court recommends that the parties
meet early in Feburary, 1994 and agree a basis for the payment of
the final phase of the PESP.
The Court so recommends.
Division: MrMcGrath Mr Keogh Mr Rorke
Text of Document__________________________________________________________________
CD93602 RECOMMENDATION NO. LCR14309
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: IRISH SOFT DRINKS LIMITED
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Claim for payment of Phase 3 of the P.E.S.P.
BACKGROUND:
2. The Company has been privately owned since August, 1990 and
employs nine workers. The Union is seeking implementation of the
3rd phase of the P.E.S.P., which was due on 1st March, 1993. The
Company states that due to financial difficulties it is unable to
pay. The dispute was referred to the Labour Relations Commission
and a conciliation conference took place on 6th September, 1993.
No agreement was reached and the dispute was referred to the
Labour Court on 11th October, 1993 under Section 26(1) of the
Industrial Relations Act, 1990. A Labour Court hearing took place
on 16th December, 1993.
UNION'S ARGUMENTS:
3. 1. A general operative in the Company earns #160.78 per
week. This is considerably below the average industrial
wage. The workers involved have always co-operated with the
Company. If the 3rd phase of the P.E.S.P. is not paid, the
workers' rates will be near the minimum national rate. The
Company is obliged to pay Phase 3 Of the P.E.S.P.
retrospectively from 1st March, 1993.
COMPANY'S ARGUMENTS:
4. 1. The Company is a small, privately owned Company trying
to survive in an industry dominated by large multinational
Companies. Since 1990 the Company has adopted an intensive
marketing and sales policy. Despite this, sales for 1993
have shown a downturn of 20% on the previous year.
2. A change in management in June 1993 was made with the
view to cutting costs and increasing profits. However, the
future of the Company is still in doubt. The Company wishes
to maintain full employment for the workers concerned.
Payment of Phase 3 of the P.E.S.P. would jeopardise
employment and the existence of the Company.
RECOMMENDATION:
The Court, having considered the views of the parties as expressed
in their oral and written submissions, believes that the workers
could expect the basic terms of the P.E.S.P. to be implemented on
the due dates.
The Court is, however, cognizant of the financial constraints
under which the Company is currently working.
In all the circumstances, the Court recommends that the parties
meet early in Feburary, 1994 and agree a basis for the payment of
the final phase of the PESP.
The Court so recommends.
~
Signed on behalf of the Labour Court
13th January, 1994. Tom McGrath
C.O'N./A.L. _______________
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Ciaran O'Neill, Court Secretary.