Labour Court Database __________________________________________________________________________________ File Number: CD95270 Case Number: LCR14861 Section / Act: S26(1) Parties: UNITED BEVERAGES SALES LIMITED (THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION) - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNIONS |
Increase in rate of pay.
Recommendation:
5. Having considered the submissions from the parties and the
additional information given at the hearing the Court has
concluded that the wage rates for the claimants are not out of
line. Accordingly the Court does not recommend in favour of the
Union's claim for an increase.
The Court is satisfied that the claimants did incur expense and
inconvenience for a period and accordingly the Court recommends
they be paid a sum of #500 as compensation.
The Court further urges the parties to co-operate with the merger
with the primary objective of retaining employment.
Division: Ms Owens Mr McHenry Mr Rorke
Text of Document__________________________________________________________________
CD95270 RECOMMENDATION NO. LCR14861
INDUSTRIAL RELATIONS ACT, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: UNITED BEVERAGES SALES LIMITED
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION)
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNIONS
SUBJECT:
1. Increase in rate of pay.
BACKGROUND:
2. 1. United Beverages Sales Limited acquired Cavan Mineral
Water Company Limited in September, 1993. The Union
has submitted a claim for an increase of #40.00 per
week in the basic rate of pay for four sales
representatives who were formerly employed by Cavan
Mineral Water Company Limited, and who are based in
Cavan. There are a total of eight sales
representatives employed by the Company.
2. The Company has offered a lump sum to the four sales
representatives and also to bring forward the
application date of phase 2 of the Programme For
Competitiveness and Work (PCW) from 12th March, 1995 to
1st January, 1995. The Union rejected the offer.
3. As no agreement could be reached between the Union and
the Company the dispute was referred to the Labour
Relations Commission and a conciliation conference was
held in Dundalk on the 20th March, 1995.
4. As no agreement was possible the dispute was referred
to the Labour Court on the 10th April, 1995 in
accordance with Section 26(1) of the Industrial
Relations Act, 1990. The Court investigated the
dispute on the 27th June, 1995.
UNION'S ARGUMENTS:
3. 1. The Union is claiming a #40.00 per week increase in
basic pay for the four sales representatives to bring
them into line with comparable employment and with
their colleagues. The Company offer of 3% increase in
pay under Clause 3 of P.E.S.P. was rejected as a
totally inadequate adjustment to their basic pay.
Statistics in the Industrial Relations News in
November, 1994 show an average basic wage of #19,000
per annum for sales representatives. The basic annual
salary of the four Cavan sales representatives is
#10,800. They are now working longer hours, travelling
longer distances, and earning less money than they did
in 1993.
2. The Company closed its office in Cavan following the
takeover of Cavan Mineral Water Company Limited. The
sales representatives are now expected to use their
homes as offices and other members of their families
are expected to assist in the execution of their
duties. They are also expected to travel to Dundalk on
a weekly basis for sales review discussions. The
Company has made no offer of compensation to them for
using their homes as offices. This is not acceptable
to the Union.
3. The Union also rejects the Company's argument that the
claim is in breach of the PCW. The claim is a
self-financing one based on the savings accruing to the
Company as a result of not having to provide office
accommodation for the sales representatives in Cavan.
COMPANY'S ARGUMENTS:
4. 1. United Beverages Sales Ltd acquired Cavan Mineral Water
Co Ltd on 1st September, 1993. At the time of the
takeover, the Cavan Mineral Water Company Limited was
in serious financial difficulties. This was recognised
by the Labour Court in 1993 (LCR14166 refers) which
recommended against concession of Clause 3, Phase 3 of
the P.E.S.P..
2. Although the Cavan operation was operating at a loss,
United Beverages decided to keep it open for a period
of 12 months, but the Company continued to lose money.
It was decided to close the Cavan operation from 1st
October, 1994. All deliveries then operated from the
Dundalk depot. As a result of the closure, eleven
redundancies were agreed with the Union. The severance
terms were generous and in excess of what was available
the previous year from Cavan Mineral Waters. The four
sales people in the Cavan area were retained.
3. The claim by the Union for a #40.00 per week increase
in the basic rate of pay for the Cavan representatives
is unrealistic. The Company has implemented three pay
increases since the take over of Cavan Mineral Water in
September, 1993 as follows;
(1) 9th September, 1993 3.75%
(2) 12th March, 1994 2.00%
(3) 12th March, 1995 2.05%
The Company also paid the telephone bills of the four
sales representatives relating to Company business and
also made a contribution towards telephone rental. The
use of the home as a base is normal in this industry
and what is expected of the representatives is not
unreasonable.
4. The Cavan representatives have a basic salary of
#10,800 which is in line with salaries paid in
comparable companies and compares very favourably with
the basic salary enjoyed by the other sales
representatives in United Beverages Sales Ltd (details
given to the Court).
5. It will no longer be necessary for the sales
representatives to travel from Cavan to Dundalk for the
weekly sales meeting. The Company has arranged
facilities in Cavan, and management will now travel
from Dundalk to Cavan for the weekly sales meeting.
RECOMMENDATION:
5. Having considered the submissions from the parties and the
additional information given at the hearing the Court has
concluded that the wage rates for the claimants are not out of
line. Accordingly the Court does not recommend in favour of the
Union's claim for an increase.
The Court is satisfied that the claimants did incur expense and
inconvenience for a period and accordingly the Court recommends
they be paid a sum of #500 as compensation.
The Court further urges the parties to co-operate with the merger
with the primary objective of retaining employment.
~
Signed on behalf of the Labour Court
Evelyn Owens
10th August, 1995 _____________
L.W./U.S. Chairman
NOTE:
ENQUIRIES CONCERNING THIS RECOMMENDATION SHOULD BE ADDRESSED TO
MR LARRY WISELY, COURT SECRETARY.