FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : CANTRELL & COCHRANE WHOLESALE LIMITED (REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - MARINE, PORT AND GENERAL WORKERS' UNION DIVISION : Chairman: Ms Owens Employer Member: Mr Keogh Worker Member: Mr O'Neill |
1. Integration of pay scales.
BACKGROUND:
2. Cantrell & Cochrane Wholesale Limited was set up in March, 1995 as a wholesale operator in the licensed package business. The Company comprises of an amalgamation of the old W.J. Dwan & Company and the transferred licensed trade salesmen from the old C&C Dublin and C&C Munster companies.
Prior to the commencement of the operation agreement was reached at the Labour Relations Commission which provided for a 12 point scale i.e. £12,600 to £18,600. The representatives who transferred from C&C to C&C Wholesale retained their existing rate of pay.
The Union's position at the Labour Relations Commission was that any rate agreed for representatives transferring from Dwans was an interim arrangement and that it viewed the old C&C scales as the appropriate rates.
In late 1996 the Union submitted a claim for the integration of the existing C&C Wholesale pay scale into the old C&C Ireland pay scale. Local level discussions failed to resolve the issue and the matter was referred to the Labour Relations Commission. A conciliation conference took place on the 22nd of May, 1997. As agreement could not be reached the dispute was referred to the Labour Court on the 27th of June, 1997 under Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 25th of August, 1997
UNION'S ARGUMENTS:
3. 1. The Union rejects the Company's claim that the rates of pay of salesmen on the old C&C scale were 'red circled' in 1995. The 'red circle' arrangement referred specifically to three named workers.
2. The Union's claim is consistent with its stated position at conciliation in 1995. It was always the Union's view that the old C&C scale was the appropriate rate for the job.
3. The workers concerned perform the same duties as their colleagues who transferred from the old C&C. It is unacceptable that they are paid a lesser rate.
4. The Union is prepared to enter into meaningful negotiations with regard to reaching agreement on a phased integration of the workers concerned into the existing agreed salary scales.
COMPANY'S ARGUMENTS:
4. 1. The employees involved in this claim have already received a significant increase in salary in that:-
(a) On transfer to C&C Wholesale they effectively accrued one increment.
(b) The W.J. Dwan 15 point scale has been reduced to a 12 point scale allowing
for faster progression to the maximum point.
(c) The maximum point on the scale was increased from £16,350 to £18,600.
2. Prior to the commencement of C&C Wholesale, W.J. Dwan & Company were in serious difficulties and but for the new company the individuals involved in this claim could have faced redundancy.
3. Comparable employees of C&C Wholesale's major competitor enjoy pay and conditions which are considerably less than those obtaining in C&C Wholesale. C&C has 40 sales representatives covering the 26 counties, its main competitor has 57 representatives at approximately the same cost operating in 19 counties.
4. The imminent amalgamation of United Beverages and Murtagh Properties Wholesale will result in the new company controlling 48% of the packaged beer market and will also result in the Finch's brand becoming a national brand for both mixers and splits. The new company will have approximately 86 sales representatives as compared to C&C Wholesale's 40.
5. This will lead to loss of market share and is likely to exacerbate the already declining margin trend. Margins have decreased by 16.5% since March, 1995 when C&C Wholesale commenced trading. Margin loss at the 22nd of May last was 13%.
6. The five sales representatives recruited since the formation of C&C Wholesale have been placed on the C&C Wholesale salary scale.
7. The Company argues that aside form the de facto redcircling arrangement agreed in respect of the old C&C salary scale, the claim is cost increasing and prohibited under the terms of Partnership 2000.
RECOMMENDATION:
Having considered the submissions from the parties and noting the reports on previous negotiations the Court recommend that the 12 point scale applicable to the claimants be extended by the addition of 2 further increments giving a 14 point scale with a maximum of £22,131 as at the 1st of May, 1997. In view of the previous negotiations, the Court recommends that the above revised scale (with appropriate adjustment to allow for Partnership 2000) be implemented from the 1st of January, 1997.
Signed on behalf of the Labour Court
Evelyn Owens
24th September, 1997______________________
F.B./D.T.Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Fran Brennan, Court Secretary.