Labour Court Database __________________________________________________________________________________ File Number: CD95649 Case Number: LCR15060 Section / Act: S26(1) Parties: TARA MEATS (KILBEGGAN) LIMITED (Represented by THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Implementation of 3% under Clause 3 of the Programme for Economic and Social Progress (PESP).
Recommendation:
The Court has considered all of the matters raised by both parties
in their oral and written submissions.
Taking into account all of the views raised and the current
circumstances, the Court recommends that the parties have
discussions within the provisions of Clause 3 of the PESP and seek
to agree arrangements which will address the claim of the
employees whilst not adding to costs at this time.
These discussions the Court considers should be comprehensive and
include all outstanding claims (i.e. consolidation of service
allowance, sick pay and pensions).
Division: Mr McGrath Mr Keogh Mr Rorke
Text of Document__________________________________________________________________
CD95649 RECOMMENDATION NO. LCR15060
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
TARA MEATS (KILBEGGAN) LIMITED
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Implementation of 3% under Clause 3 of the Programme for
Economic and Social Progress (PESP).
BACKGROUND:
2. The Company, which is in operation since 1987, is engaged in
the supply of vacuum packed chilled beef to supermarkets
throughout Europe. Both the Company and its sister company
in Dublin were purchased by Dairygold Co-operative Society
Limited in 1993. The Companies employ 180 workers, of whom
approximately 125 trimmers, semi-skilled and general
operatives are involved in the claim.
The Union claims that the workers' rates of pay are low
compared with those in other employments locally and that a
number of other employers in the industry have negotiated
payments under Clause 3 of the PESP. The Company's position
is that it is a 'stand-alone' operation which has incurred
losses since 1992 and that its rates of pay are good by
industry standards.
The dispute was the subject of a conciliation conference
under the auspices of the Labour Relations Commission on 8th
November, 1995. Agreement was not reached and the dispute
was referred to the Labour Court on 16th November, 1995, in
accordance with Section 26(1) of the Industrial Relations
Act, 1990. The Court investigated the dispute on 11th
December, 1995.
UNION'S ARGUMENTS:
3. 1. The workers are at a financial disadvantage compared to
those in other companies who enjoy the benefits of
sick-pay schemes, pension schemes, production and
Christmas bonus. Their rates of pay are also
considerably inferior to those applying in good
employments locally.
2. In 1992 the Company aspired to processing 2,500 quarters
of beef per week. Today it processes well in excess of
3,500 quarters. This is testament to the high
performance levels of the workers concerned.
3. The Company is the only operator in the beef processing
industry to have been awarded the ISO 9002 Quality
Accreditation. This could not have been achieved
without the skill, commitment and dedication of the
workers. Other employers applied the 3% increase in
return for co-operation in achieving this accreditation.
4. Membership of the Dairygold Group has provided
opportunities for expansion which are not available to
other companies in the industry. The Company pleads
inability to implement pay increases, yet the 1994
audited accounts for the Dairygold Group show a
considerable increase over 1993 figures.
COMPANY'S ARGUMENTS:
4. 1. The Company is not in a position to negotiate pay
increases due to economic and commercial circumstances.
The previous Intervention market and current Live Cattle
Export Trade, which are heavily subsidised, have
inflated cattle prices and have caused intense
competition for supplies. In addition, over-capacity in
the beef processing industry, decreasing margins and the
weakness of sterling have contributed to the
difficulties experienced by the Company.
2. The Company has survived and expanded with the support
of the Dairygold Group whose continued support depends
on achieving a reasonable return on their investment.
The Company is a 'stand-alone' operation which has
incurred losses since 1992. It cannot expect the Group
to subsidise its operation and must reduce costs and
increase efficiency to return the Company to
profitability.
3. The rates of pay of the workers concerned compare very
favourably to others in the beef processing industry.
The vast majority of comparable companies have not
implemented Clause 3 for similar reasons.
RECOMMENDATION:
The Court has considered all of the matters raised by both parties
in their oral and written submissions.
Taking into account all of the views raised and the current
circumstances, the Court recommends that the parties have
discussions within the provisions of Clause 3 of the PESP and seek
to agree arrangements which will address the claim of the
employees whilst not adding to costs at this time.
These discussions the Court considers should be comprehensive and
include all outstanding claims (i.e. consolidation of service
allowance, sick pay and pensions).
~
Signed on behalf of the Labour Court
12th January, 1996 Tom McGrath
D.G./D.T. ___________
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Ms. Dympna Greene, Court Secretary.