Labour Court Database __________________________________________________________________________________ File Number: CD95478 Case Number: LCR14993 Section / Act: S26(1) Parties: INTERNATIONAL CONTRACT CLEANERS LIMITED (ICC) (Represented by THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION) - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Claim for an increase in hourly rate of pay.
Recommendation:
The Court considered the submissions, both written and oral, of
the parties. While acknowledging that the Contract Cleaning
(Dublin City and County) JLC does not extend beyond the boundary
implicit in its title, the Court nevertheless has sympathy with
the claim as a straight forward wage claim for a group of workers.
The Court is satisfied that as newly-organised workers the claim
is not debarred under the PCW. It is, therefore, recommended that
the parties meet to discuss realistically the claim, and the
possible phasing in of an agreed new rate.
Division: Mr Flood Mr Keogh Mr Rorke
Text of Document__________________________________________________________________
CD95478 RECOMMENDATION NO. LCR14993
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
INTERNATIONAL CONTRACT CLEANERS LIMITED (ICC)
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION)
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Claim for an increase in hourly rate of pay.
BACKGROUND:
2. The dispute before the Court concerns the Union's claim for
an increase in the hourly rate of pay on behalf of
approximately 30 workers employed by the Company in
Waterford. The workers concerned were unionised in late
1993. The Union is seeking the application to the workers of
the Contract Cleaning (City and County of Dublin) Joint
Labour Committee (JLC) rates of pay.
Local level discussions took place but no progress was made
and the matter was referred to the Labour Relations
Commission. A conciliation conference took place but
agreement could not be reached and the dispute was referred
to the Labour Court under Section 26(1) of the Industrial
Relations Act, 1990. A Labour Court hearing took place in
Waterford on 8th November, 1995.
UNION'S ARGUMENTS:
3. 1. The Union is seeking similar rates of pay to workers
employed in similar employment by the Company in Dublin.
The same category of workers employed in Dublin are paid
considerably more than the workers in Waterford.
2. Workers employed in the contract cleaning industry
operating in the city and County of Dublin enjoy the
protection of minimum hourly rates set out by the JLC.
3. In the past two years the Union has attempted to
standardise the hourly rate of workers employed in the
industry in Waterford in line with the JLC hourly rate.
It has achieved considerable success with several
companies which operate extensively in Waterford. The
companies concerned have increased their business in the
region despite applying the JLC rates of pay.
4. The Union has offered to negotiate a phased-in approach
to closing the gap between the existing rate and the
rate claimed over an agreed time scale but the Company
has resisted any meaningful approach to resolving the
issue of pay.
COMPANY'S ARGUMENTS:
4. 1. The Union's claim is cost increasing and therefore in
breach of the terms of the Programme for Competitiveness
and Work (PCW).
2. The Contract Cleaning (City and County of Dublin) JLC
was established in 1984 and since its establishment has
recommended minimum rates of pay and conditions of
employment for the specific category of workers to which
it applies. At no stage since its establishment has it
purported to establish rates of pay or conditions of
employment on behalf of employees outside of the City or
County of Dublin.
3. If the Labour Court recommend, that JLC rates of pay
and conditions of employments established for Dublin
City and County, were to have application outside of
Dublin City and County, this would have serious and
widespread repercussions throughout the Country.
4. ICC quotes for each contract throughout the Country on
an individual basis. The price it quotes is determined
by the competitive rate in each individual geographical
area. This in turn determines the rate of pay the
Company can afford to offer in that location.
5. The current contract cleaning JLC rate was established
with due regard to the ability of contract cleaning
companies operating within Dublin to pay that rate.
This is determined by the price which cleaning companies
can quote for their services in the Dublin market.
ICC quotes for contracts in Dublin and Waterford at
entirely different rates.
6. When ICC established in Waterford in 1993, it set a rate
of pay which was reasonable and affordable as determined
by the price quoted for its service to compete in the
Waterford region. Since then, ICC has applied increases
according to the provisions of the National Agreements.
However, since the Company's establishment in Waterford
it has received no increased payment from its client
companies.
7. If the Company were to concede to the Union's demand it
would be necessary for it to commensurately increase
the price it quotes for its service and this would
inevitably lead to the loss of the current contracts and
withdrawal from the Waterford market.
RECOMMENDATION:
The Court considered the submissions, both written and oral, of
the parties. While acknowledging that the Contract Cleaning
(Dublin City and County) JLC does not extend beyond the boundary
implicit in its title, the Court nevertheless has sympathy with
the claim as a straight forward wage claim for a group of workers.
The Court is satisfied that as newly-organised workers the claim
is not debarred under the PCW. It is, therefore, recommended that
the parties meet to discuss realistically the claim, and the
possible phasing in of an agreed new rate.
~
Signed on behalf of the Labour Court
4th December, 1995 Finbarr Flood
F.B./D.T. _______________
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Fran Brennan, Court Secretary.