FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : PIERCAN IRELAND LIMITED (REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Employer Member: Worker Member: |
1. Wage increase.
BACKGROUND:
2. The Company is located at Kenmare, Co. Kerry. It manufactures latex laboratory gloves for the corporate plant in France from where the product is distributed and sold. The Company employs 41 workers. In 1995, the Company and the Union negotiated a comprehensive agreement under the auspices of the Labour Relations Commission. The parties could not reach agreement on the rates of pay to apply. The dispute was referred to the Labour Relations Commission and a conciliation conference was held on the 30th January, 1996. Agreement was not possible and the dispute was referred to the Labour Court on the 9th August, 1996. A Court hearing was held in Tralee on the 10th October, 1996.
UNION'S ARGUMENTS:
3. 1. The present rates of pay in the Company are very low and compare unfavourably with other employments in the area. It is essential that a new wage structure, outside the terms of the PCW, be put in place. The Union is prepared to enter into discussions with Management as to how this might be achieved.
2. The present offer of £4 per week on basic rate is unrealistic and was rejected following a ballot of the workforce. A substantial increase on the basic rate must be made.
COMPANY'S ARGUMENTS:
4. 1. The Company is in a very difficult trading position. Its main product is sold to the parent company in France. There is only one major customer upon which the Irish plant is totally dependent. Operating margins are extremely tight. The Company cannot increase the selling price to the customer. Attempts to diversify into manufacturing other products have not been successful.
2. The nature of the core business is very labour intensive. The Company is in direct competition with low cost eastern products. Any increase in the cost base could seriously jeopardise the future viability of the Irish plant.
3. The Company has paid the increases due under PESP/PCW.
4. Following numerous meetings at conciliation the Company agreed to the proposal of the Labour Relations Commission to apply an additional £4 to the basic wage rate in addition to the 3rd phase of the PCW. Any further increase in labour costs is unsustainable given the Company's economic and commercial circumstances.
RECOMMENDATION:
The Court having considered all of the issues raised by the parties in their oral and written submissions recommends as follows:-
That the basic rate of pay be increased with effect from the 1st February 1996 from the rate of £138.40 per week to £144.90 per week.
The application of the 2.5% under the terms of the PCW to be applied from the same date with the final phase of the PCW (i.e. 1%) being applied from 1st August 1996.
The Court so recommends.
Signed on behalf of the Labour Court
Tom McGrath
1st November, 1996______________________
T.O'D./S.G.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Tom O'Dea, Court Secretary.