Labour Court Database __________________________________________________________________________________ File Number: CD9472 Case Number: LCR14798 Section / Act: S26(1) Parties: BYRNE-MECH ENGINEERING LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Pay cuts and other changes in working conditions.
Recommendation:
The Court has examined the submissions of the parties and has
taken particular note of the verbal comments made during the
hearing.
It is clear that the Company is experiencing financial pressures
as a result of the change in its customer base. However, the
Court cannot ignore the severe effects caused by management's
imposition of a revised pay-structure and conditions of employment
on its workforce.
Having considered the problem before it in detail, the Court's
conclusion is that the revised pay-structure is not unreasonable
given the nature of its new trading market. In order that the
employment be stabilised, the Court believes that the moratorium
on pay increases and conditions of employment should continue into
1996. In February, 1996, the parties should meet to determine
national pay movements from an agreed date and the restoration of
the former conditions of employment.
Finally, the Court does not rule out the possibility that the
Company's former customers may return and, in such circumstances,
it believes that the Union could reopen the question of an
increase in pay rates.
The Court so recommends.
Division: Mr Flood Mr Keogh Mr Rorke
Text of Document__________________________________________________________________
CD9472 RECOMMENDATION NO. LCR14798
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
BYRNE-MECH ENGINEERING LIMITED
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Pay cuts and other changes in working conditions.
BACKGROUND:
2. The Company is involved in the manufacture of sheet-metal
products for the automotive, computer, electronic and textile
industries. It was established in 1977 and is based in
Athenry, Co. Galway, employing approximately 60 hourly-paid
workers of which up to 32 are involved in the dispute. A
large part of the Company's business centred around Amdahl
Computers and, when Amdahl curtailed its operation, the
Company found itself in severe difficulties, and incurring
loses on an ongoing basis. At the end of November, 1993, the
Company proposed across-the-board pay cuts and changes in
working conditions. Following conciliation and local
discussions, the Company's proposals were rejected by a
general meeting of the workforce and the dispute was referred
to the Labour Court, on the 1st of February, 1994, in
accordance with Section 26(1) of the Industrial Relations
Act, 1990. A Court hearing scheduled for August, 1994, was
deferred at the request of the parties pending further
conciliation and discussions. A set of proposals was
accepted by both parties in September, 1994, to be reviewed
in early 1995.
At the review in February, 1995, the Union sought the gradual
re-introduction of the conditions enjoyed prior to November,
1993. The Company indicated that it was not in a position to
make further concessions. The parties agreed to
re-activate the referral to the Labour Court. The Court
investigated the dispute, in Galway, on the 17th of May,
1995.
UNION'S ARGUMENTS:
3. 1. Since early 1993, the workers have been patient and
understanding of the Company's predicament. They have
co-operated with the Company in every way possible. All
that is being sought is a return to the position of 1993
vis-a-vis working conditions and wage rates.
COMPANY'S ARGUMENTS:
4. 1. The Company is not in a position to accede to any of the
Union's demands. Losses in excess of #100,000 were
incurred between July, 1993, and March, 1994. The cost
of basic raw materials has risen by 80% and the currency
problem in relation to the value of sterling adversely
affects exports to the U.K.
RECOMMENDATION:
The Court has examined the submissions of the parties and has
taken particular note of the verbal comments made during the
hearing.
It is clear that the Company is experiencing financial pressures
as a result of the change in its customer base. However, the
Court cannot ignore the severe effects caused by management's
imposition of a revised pay-structure and conditions of employment
on its workforce.
Having considered the problem before it in detail, the Court's
conclusion is that the revised pay-structure is not unreasonable
given the nature of its new trading market. In order that the
employment be stabilised, the Court believes that the moratorium
on pay increases and conditions of employment should continue into
1996. In February, 1996, the parties should meet to determine
national pay movements from an agreed date and the restoration of
the former conditions of employment.
Finally, the Court does not rule out the possibility that the
Company's former customers may return and, in such circumstances,
it believes that the Union could reopen the question of an
increase in pay rates.
The Court so recommends.
~
Signed on behalf of the Labour Court
8th June, 1995 Finbarr Flood
M.K./D.T. _______________
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Michael Keegan, Court Secretary.