Labour Court Database __________________________________________________________________________________ File Number: CD95546 Case Number: LCR14997 Section / Act: S26(1) Parties: M.D. O'CONNOR AND SONS LIMITED (Represented by THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION;SIPTU |
Non payment of Phase 2 of the Programme for Competitiveness and Work.
Recommendation:
The Court recommends that the Company pay Phase 2 of the PCW from
1st October, 1995.
The Court further recommends that the parties co-operate with the
proposed review by the consultants as a matter of urgency, with a
view to arriving at a mutually acceptable solution to the problems
facing the Company. Their discussions to include the issue of
outstanding retrospection payments.
Division: Mr Flood Mr Keogh Mr Rorke
Text of Document__________________________________________________________________
CD95546 RECOMMENDATION NO. LCR14997
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
M.D. O'CONNOR AND SONS LIMITED
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Non payment of Phase 2 of the Programme for Competitiveness
and Work.
BACKGROUND:
2. The Company is engaged in the poultry manufacturing industry,
employing a workforce of 180.
The claim by the Union concerns the non-payment of the second
phase increase of 2.5% under the Programme for
Competitiveness and Work, due from 1st April, 1995. Phase
one of the PCW was paid with effect from 1st July, 1994,
under the terms of Labour Court Recommendation LCR14494.
Phases two and three of the PESP, and backmoney due from
Phase one of the PESP, are still outstanding, by agreement,
under LCR14494.
The Company pleads inability to pay any increase, as it has
incurred considerable losses over a number of years and has
survived only with the continued financial support of its
directors.
Following local negotiations the Union referred the dispute
to the Labour Relations Commission and a conciliation
conference was held on 12th September, 1995. Agreement was
not reached and the dispute was referred to the Labour Court,
on 26th September, 1995, under Section 26(1) of the
Industrial Relations Act, 1990. The Court investigated the
dispute, in Waterford, on 8th November, 1995.
UNION'S ARGUMENTS:
3.1. The workers can no longer accept the Company's continuous
claim of inability to pay National Pay Agreements. The
workers accepted a deferral of payments due under Phases 1, 2
and 3 of the PESP, pending an improvement in the Company's
financial position. Following a Labour Court hearing
(LCR14494 refers), Phase 1 of the PCW was paid, but three
months after the due date.
2. In December, 1992 a conciliation conference was held in the
Labour Relations Commission. A number of cost cutting
measures were agreed including the reduction of a weekly
production bonus by 50%, to £22.50, for 98 production
workers. This resulted in substantial savings for the
Company, but impacted seriously on the workers' take-home
pay and living standards.
3. The kill figures in the plant have increased and sales are at
a very high level, yet the Company refuses to review the cost
cutting measures, as proposed by the Industrial Relations
Officer in 1992.
COMPANY'S ARGUMENTS:
4.1. Over the past number of years the Company has sustained
substantial losses, primarily due to high feed costs, intense
competition, price cutting and over capacity. Its labour
costs are also higher than its two competitors in the Munster
region.
2. Cost control is essential as the Company is continuously
under pressure to cut prices to its customers.
3. Despite the cost reduction programme the Company continues
to operate in a loss-making capacity. The directors have
contributed large sums of money to enable the Company to
survive.
4. Following discussions with the I.D.A. the Company has invited
management consultants to examine the business. This will
review operational issues relating to manufacturing and may
take six months to complete.
RECOMMENDATION:
The Court recommends that the Company pay Phase 2 of the PCW from
1st October, 1995.
The Court further recommends that the parties co-operate with the
proposed review by the consultants as a matter of urgency, with a
view to arriving at a mutually acceptable solution to the problems
facing the Company. Their discussions to include the issue of
outstanding retrospection payments.
~
Signed on behalf of the Labour Court
5th December, 1995 Finbarr Flood
D.G./A.K. ---------------
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Ms. Dympna Greene, Court Secretary.