FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : WOODFAB LIMITED (REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Employer Member: Worker Member: |
1. Dispute concerning the Union's claim for payment of Phase 3 of the Programme for Competitiveness and Work (PCW) and the introduction of a sick pay scheme and pension schemes.
BACKGROUND:
2. The Company's plant in Fermoy is part of a group of two companies engaged in the timber industry. The other plant is located in Aughrim. The dispute relates to the Fermoy plant where approximately 55 workers are employed. The Union's claim was submitted in December 1995. The claim was rejected by the Company on the grounds of its financial situation. The dispute was referred to the Labour Relations Commission and a conciliation conference was held on the 11th June, 1996. Agreement was not possible and the claim was referred to the Labour Court by the Labour Relations Commission on the 11th July, 1996. A Court hearing was held in Cork on the 28th November, 1996.
UNION'S ARGUMENTS:
PCW INCREASE:
3. 1. The rates of pay of the workers concerned are very low and workers have always depended on overtime to make up a reasonable wage. In recent times the amount of overtime working has been reduced significantly. Pay rates in the industry are well below the national average.
2. The Company has tried to justify withholding the increase on the grounds of log costs and market price. Other sawmills, faced with similar difficulties have paid the terms of the P.C.W. A sister company has also paid the increase with effect from 1st July, 1996.
3. The workforce has given excellent co-operation to the Company and has increased productivity in recent years.
SICK PAY:
4. The vast majority of good employments operate sick pay schemes and it is imperative that a scheme, however modest, is introduced.
PENSION SCHEME:
5. In March, 1994 the Company proposed implementing a scheme subject to workers foregoing the P.C.W. increase and withdrawing the sick pay claim. This was not acceptable to the Union. The Company has confirmed that some workers are included in a Company pension scheme. It has refused to divulge details and has also refused to extend the scheme. The workers concerned should be given access to the scheme.
COMPANY'S ARGUMENTS:
PCW INCREASE:
4. 1. The Company has sustained significant losses in recent years due to the imbalance between the price of raw materials (too high) and the price it commands for its products in the market place (too low). Losses continue at a significant rate (details to the Court).
2. The P.C.W. provides that the increase be negotiated with due regard to the economic and commercial circumstances of the Company.
3. The Aughrim plant recently received a Labour Court recommendation in relation to a similar position adopted by the Company for that plant i.e. its financial position (LCR 15245 refers).
PENSION/SICK PAY SCHEME:
4. The Company is unable to consider these claims due to its financial position and the fact that these schemes are not a feature of the industry generally.
5. The Company already competes from a higher cost base against, primarily, family owned, non-union rural based enterprises. This places the Company at a significant competitive disadvantage. The absorption of further costs would threaten the viability of the plant.
RECOMMENDATION:
The Court recommends that the 3rd phase of the P.C.W. be paid from 1st April, 1996.
Taking into account the information before it the Court recommends that the claim for sick pay and pension should be held over until the Company's financial performance improves.
The Court so recommends.
Signed on behalf of the Labour Court
Finbarr Flood
6th December, 1996______________________
T.O'D./S.G.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Tom O'Dea, Court Secretary.