LCR14893

Subject:
Phase 1 of Programme for Competitiveness and Work (PCW).

Recommendation:
Having considered all the information before it, the Court makes
the following recommendation:
(1) Phase 1 of the P.C.W. to be paid from 1st July, 1995.

(2) Phase 2 of the P.C.W. to be paid from 1st January, 1996.

(3) Review of payment of the outstanding monies for the periods
betweeen 1st July, 1994 and 30th June, 1995 (Phase 1,
P.C.W.), and 1st July, 1995 and 1st January 1996 (Phase 2,
P.C.W.), to take place before June 1996.

Division: Mr Flood Mr Pierce Mr Rorke

Text of Document__________________________________________________________________

CD95402 RECOMMENDATION NO. LCR14893

INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990

PARTIES:
MASSER HAMMOND LIMITED
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)

AND

MARINE PORT AND GENERAL WORKERS' UNION

SUBJECT:

Phase 1 of Programme for Competitiveness and Work (PCW).


BACKGROUND:
The Company services the catering industry through sales of
catering, laundry and refrigeration equipment. It was part
of the Smurfit Group when a management buy-out occured in
February, 1995. The Company employs 35 workers. The dispute
concerns 5 workers.

At a meeting on 1st March, 1995, the Company and Union met at
local level to discuss the management buy-out. Also
discussed was payment of Phase 1 of the PCW. On 18th April,
1995, the Union formally requested payment of same. The
Company responded on 27th April, 1995, by stating that, due
to economic difficulties, it was unable to pay. The dispute
was referred to the Labour Relations Commission (LRC) and a
conciliation conference was held on 19th June, 1995. No
agreement was reached and the dispute was referred to the
Labour Court on the 4th July, 1995, in accordance with
Section 26(1), Industrial Relations Act, 1990. A Labour
Court hearing took place on 31st August, 1995 (the earliest
date suitable to the parties).

UNION'S ARGUMENTS:
1. The workers were given only 2 days' notice of the change of
management. In a letter of notification, dated 15th
February, 1995, to the workers the Company stated that "we
believe that the new Company has a very promising future".
This is in direct contrast to the Company's statement of 27th
April, 1995. Other sections in the Company have an agreement
whereby they receive additional payment of approximately #16
per week.


2. A section of the Transfer Regulations Directive from the EU
states "Under the regulations which implement the Directive,
the new employer is obliged to honour the employment
commitments given by the previous employer". If the buy-out
had not taken place, the workers would have received the 1st
Phase of the PCW, as they had received all payments due under
previous National Agreements when the Company was owned by
the Smurfit Group.

COMPANY'S ARGUMENTS:

1. The Company incurred serious losses in 1992 and 1993. At
present it appears that it will return a loss for 1995. The
Company operates in a very competitive business. Because it
is no longer part of a major industrial group, the Company is
increasingly dependant on cash flow.

2. The Company cannot afford to pay an increase in basic wages
because of the financial and commercial difficulties it finds
itself in.
RECOMMENDATION:
Having considered all the information before it, the Court makes
the following recommendation:
(1) Phase 1 of the P.C.W. to be paid from 1st July, 1995.

(2) Phase 2 of the P.C.W. to be paid from 1st January, 1996.

(3) Review of payment of the outstanding monies for the periods
betweeen 1st July, 1994 and 30th June, 1995 (Phase 1,
P.C.W.), and 1st July, 1995 and 1st January 1996 (Phase 2,
P.C.W.), to take place before June 1996.
~
Signed on behalf of the Labour Court


12th September, 1995 Finbarr Flood
C.O.N./A.K. ---------------
Deputy Chairman

Note
Enquiries concerning this Recommendation should be addressed to
Mr. Ciaran O'Neill, Court Secretary.