Labour Court Database __________________________________________________________________________________ File Number: CD93684 Case Number: LCR14494 Section / Act: S26(1) Parties: CAPPOQUIN CHICKENS - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Re-hearing arising from Labour Court Recommendation No. LCR 13896.
Recommendation:
The Court has considered the submissions of the parties, the oral
evidence given at the hearing and the audited accounts submitted
by the Company. The Court accepts the difficult financial
position which precluded payment of both phase 2 and phase 3 of
the P.E.S.P. and three months back-money in respect of phase 1.
While the financial position can still be regarded as parlous and
does not permit payment of the outstanding amounts at this time,
the Court nevertheless considers that the payment of nationally
agreed increases cannot be withheld indefinitely from the workers.
Accordingly the Court recommends that the Company pay the workers
the first phase (2%) of the P.C.W. with effect from the 1st July
1994, and that other outstanding amounts await negotiation when
the financial position improves.
Division: Mr Heffernan Mr Brennan Mr Rorke
Text of Document__________________________________________________________________
CD93684 RECOMMENDATION NO. LCR14494
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
CAPPOQUIN CHICKENS
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION)
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Re-hearing arising from Labour Court Recommendation No. LCR
13896.
BACKGROUND:
2. At the Labour Court hearing held on 24th November, 1992 the
Union sought the following:-
A. Payment of three months (April - June, 1991)
retrospection due on Phase 1 of the P.E.S.P.
B. Implementation of the second phase increase of 3% due
from 1st April, 1992.
Labour Court Recommendation No. LCR 13896 issued as follows
on 9th December, 1992:-
"Having considered the submissions made by the parties
and additional information supplied by the Company, the
Court is satisfied that at the present time the Company
is unable to make the payments due under the terms of
the P.E.S.P.
The Court therefore recommends that the claims be put
into abeyance for at least nine months from the date of
issue of this Recommendation, at which date the Court,
in the light of the financial situation then prevailing,
will issue a further recommendation on the claims".
The Union is now seeking implementation of both payments. It
is also seeking the third phase increase of 3.75% due, under
the terms of the P.E.S.P., since April, 1993.
The Union wrote to the Labour Court on 30th November, 1993
seeking a re-hearing on the matter. A Labour Court hearing
was held on 31st May, 1994 in Waterford (the earliest date
suitable to both parties).
UNION'S ARGUMENTS:
3. 1. At a conciliation conference on the 8th December, 1993,
whilst awaiting Labour Court Recommendation No. LCR
13896, a number of cost-saving proposals (details
supplied to the Court) were put forward by the
Industrial Relations Officer. The proposals were
accepted by the workers although they resulted in a
reduction in take home pay for the majority of workers.
2. The Christmas bonus scheme in 1992 was reduced from
#156.17 to #109.31. The weekly bonus scheme was reduced
by 50% effective from January, 1993. The weekly bonus
affects approximately 98 workers. The reduction of the
weekly bonus resulted in a total saving for the Company
of #160,965 for the period January, 1993 to May, 1994.
Workers also gave up one of their three 10-minute breaks
daily without being compensated.
3. The workers have made numerous concessions in
contributing to the maintenance of the Company. Whilst
they may agree to a deferment of the increases, they
deserve payment of all arrears at some time in the
future.
COMPANY'S ARGUMENTS:
4. 1. The Company is not in a position to increase rates of
pay. It will sustain substantial losses in 1994, even
greater than in 1993. The principal aim of the Company
is to maintain employment, which it has done since 1992.
An increase in pay would jeopardise jobs.
2. Wages at the Company are a basic rate of #156.17 plus
weekly bonus of #22.50. The Company's main competitors
pay a basic wage of #155.00 and no bonus. The Company
is currently negotiating with suppliers to secure a
second round of reductions in suppliers margins. .
RECOMMENDATION:
The Court has considered the submissions of the parties, the oral
evidence given at the hearing and the audited accounts submitted
by the Company. The Court accepts the difficult financial
position which precluded payment of both phase 2 and phase 3 of
the P.E.S.P. and three months back-money in respect of phase 1.
While the financial position can still be regarded as parlous and
does not permit payment of the outstanding amounts at this time,
the Court nevertheless considers that the payment of nationally
agreed increases cannot be withheld indefinitely from the workers.
Accordingly the Court recommends that the Company pay the workers
the first phase (2%) of the P.C.W. with effect from the 1st July
1994, and that other outstanding amounts await negotiation when
the financial position improves.
~
Signed on behalf of the Labour Court
8th July, 1994 Kevin Heffernan
C.O.N./D.T. _______________
Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Ciaran O'Neill, Court Secretary.