Labour Court Database __________________________________________________________________________________ File Number: CD93417 Case Number: LCR14359 Section / Act: S26(1) Parties: WOODFAB LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning the implementation of Phase 3 of the Programme for Economic and Social Progress (P.E.S.P.).
Recommendation:
5. The Court having considered the views expressed by the parties
in their oral and written submissions is satisfied that the
workers are entitled to payment of the 3rd phase of P.E.S.P. from
the due date. However, having regard to the trading and financial
difficulties of the business, the Court recommends that the 3rd
phase be paid with effect from 1st January, 1994 and that the
parties review the position on 1st April, 1944 with a view to
agreeing arrangements for the payment of the arrears. In any
event, the arrears should be paid within the Calendar Year 1994.
Division: Mr Heffernan Mr Brennan Mr Walsh
Text of Document__________________________________________________________________
CD93417 RECOMMENDATION NO. LCR14359
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1)
INDUSTRIAL RELATIONS ACT, 1990
PARTIES: WOODFAB LIMITED
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION)
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning the implementation of Phase 3 of the
Programme for Economic and Social Progress (P.E.S.P.).
BACKGROUND:
2. 1. The Woodfab plant in Aughrim is part of a group of three
companies owned by the Smurfit Group and engaged in the timber
industry in Aughrim, Fermoy and Moutrath.
2. The third phase of the P.E.S.P. was due on 1st March,
1993, and the company informed the Union that, because of its
economic and commercial circumstances, it would be unable to
apply this increase and on the projections available to it at
the time, would be unlikely to be in a position to pay it in
the foreseeable future. The Union did not accept the
Company's position as it was its understanding that the three
annual increases under P.E.S.P. were mandatory. The issue was
referred to the Labour Relations Commission and a conciliation
conference was held on 29th April, 1993. Agreement could not
be reached and the matter was refereed by the Labour Relations
Commission to the Labour Court on 12th July, 1993. The Court
investigated the matter on 15th February, 1994 in Arklow.
UNION'S ARGUMENTS:
3. 1. The Company is in breach of the terms of the P.E.S.P.
It provided for three annual mandatory increases and it has no
"inability to pay" clause.
2. The Labour Court recommended the payment of Phase 3 of
P.E.S.P. to workers in the Woodfab plant in Fermoy.
3. Taking inflation and the 1% income levy into account,
the workers were 4% or more worse off in real terms in 1993
than in 1992.
COMPANY'S ARGUMENTS:
4. 1. The Company is unable to pay the third phase of P.E.S.P.
due to its economic and commercial circumstances.
RECOMMENDATION:
5. The Court having considered the views expressed by the parties
in their oral and written submissions is satisfied that the
workers are entitled to payment of the 3rd phase of P.E.S.P. from
the due date. However, having regard to the trading and financial
difficulties of the business, the Court recommends that the 3rd
phase be paid with effect from 1st January, 1994 and that the
parties review the position on 1st April, 1944 with a view to
agreeing arrangements for the payment of the arrears. In any
event, the arrears should be paid within the Calendar Year 1994.
~
Signed on behalf of the Labour Court
Kevin Heffernan
7th March, 1994 -----------------
P O'C/U.S. Chairman
NOTE:
Enquiries concerning this Recommendation should be addressed to
Mr Paul O'Connor, Court Secretary.