Labour Court Database __________________________________________________________________________________ File Number: CD94302 Case Number: LCR14563 Section / Act: S26(1) Parties: IRISH SNACK FOODS COMPANY - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION;MANUFACTURING SCIENCE FINANCE |
Re-hearing arising from LCR 14207.
Recommendation:
Having considered the submissions and taking into account the
present trading position of the Company the Court recommends that
Phase 3 of P.E.S.P. be paid from 1st January, 1995, and that the
implementation of P.C.W. be the subject of local negotiations in
April 1995. The arrears of Phase 3 of P.E.S.P. due should be
treated as a outstanding amount due to employees to be paid when
the Company have sustained profit for a one-year period.
Division: Ms Owens Mr Brennan Mr Rorke
Text of Document__________________________________________________________________
CD94302 RECOMMENDATION NO. LCR14563
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
IRISH SNACK FOODS COMPANY
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION)
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
MANUFACTURING SCIENCE FINANCE
SUBJECT:
1. Re-hearing arising from LCR 14207.
BACKGROUND:
2. The Company is involved in the manufacture, sale and
distribution of crisps and other snack foods for the Republic
of Ireland market. It employs approximately 50 workers and
is located in Bunbeg Industrial Estate, Bunbeg, County
Donegal. It was purchased by the present owners from Gilbeys
of Ireland in August, 1992.
The dispute before the Court concerns the Union's claim for
an increase under the terms of the third Phase of the
Programme for Economic and Social Progress (P.E.S.P.) which
was due with effect from 1st October, 1992. The Company is
claiming inability to pay the increase due.
In October, 1993 the Labour Court issued LCR 14207 which
recommended that the parties review the position with regard
to the implementation of Phase 3 of P.E.S.P. in April, 1994,
and that, if the parties failed to reach agreement, they
should remit directly back to the Court for recommendation.
Local level discussions took place in April, 1994 but no
agreement was reached and the dispute was referred back to
the Court in April, 1994. A Labour Court hearing took place
in Donegal on 15th September, 1994.
UNION'S ARGUMENTS:
3. 1. The workers concerned have made a substantial
contribution to the Company in the past and have
co-operated fully with management in relation to
substantial job losses, short-time working, loss of
shift premium, reduction in overtime and the exclusion
of overtime from holiday pay calculations, plus other
changes which had severe adverse affects on the workers.
2. The workers' pay levels are out of line with other local
employments as a result of the Company's failure to meet
its obligations under Phase 3 of the P.E.S.P. and the
first Phase of the Programme for Competitiveness and
Work (P.C.W.).
3. The workers have given every possible assistance to the
Company to enable it to return to profitability. In the
circumstances it is unreasonable and unrealistic of the
Company to ask the workers to forego the increase due
under Phase 3 of P.E.S.P.
COMPANY'S ARGUMENTS:
4. 1. It is provided under Clause 2 of P.E.S.P. that annual
basic increases shall be negotiated with "due regard
being had to the economic and commercial circumstances
of the particular firm, employment or industry".
2. The Company has been in a loss-making position since it
was established. Concession of the Union's claim would
make it ever more difficult for the Company to become
profitable. If the Company is unsuccessful in
implementing its various strategies for turning the
business around, the business itself will be at risk.
3. The crisp and snack market is small and the Company's
share of the market is approximately 6%. The Company,
due to its limited share of the market, is particularly
vulnerable to price movements.
4. The Company has kept all costs under review, with a view
to placing it on a correct cost base. This has been
coupled with a programme of careful investment to reduce
losses.
5. The rates of pay and conditions of employment of the
workers compare favourably with local industry
generally.
6. The Company has done everything possible to convince the
workers of its precarious position. It is the Company's
view that it is unrealistic at this time to contemplate
any payment under Phase 3 of P.E.S.P. The priority of
all concerned should be more appropriately focused on
working together to create the conditions to enable
payment of the P.C.W. in early 1995.
RECOMMENDATION:
Having considered the submissions and taking into account the
present trading position of the Company the Court recommends that
Phase 3 of P.E.S.P. be paid from 1st January, 1995, and that the
implementation of P.C.W. be the subject of local negotiations in
April 1995. The arrears of Phase 3 of P.E.S.P. due should be
treated as a outstanding amount due to employees to be paid when
the Company have sustained profit for a one-year period.
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Signed on behalf of the Labour Court
3rd October, 1994 Evelyn Owens
F.B./M.M. ____________
Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Fran Brennan, Court Secretary.