LCR17158

SUBJECT:
1. Rates of pay.


BACKGROUND:

2. Bandon Co-op. is one of 4 West Cork based co-ops, namely Bandon, Barryroe, Drinagh and Lissavaird, with a controlling interest in Carbery Milk Product. The Union's claim is for the application of a pay rise of £22.50 (€28.57) made up of £12.50 (€15.87) from the 1st of June, 2001, and £10.00 (€12.70) from the 1st of June, 2002, which has been applied to the other 3 co-ops following negotiations with them in 2000/2001. The Union is also seeking a once-off lump sum of €259.95 per worker. The Union's case is that there is agreed relativity between the 4 co-ops whereas management maintains that each co-op has always acted separately.

The dispute was referred to the Labour Relations Commission and a conciliation conference took place. As the parties did not reach agreement, the dispute was referred to the Labour Court in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 8th of May, 2002, in Cork.


UNION'S ARGUMENTS:

3. 1. Agreement was reached with the Drinagh Co-op in December, 2000, in regard to the pay increase of €28.57 and the Union believed that same would apply for the other 3 co-ops. However, this did not happen in the case of Bandon.

2. Bandon Co-op. cannot use the excuse that it dealt with individuals separately. This should not have been done. The claim is for all members as their pay rates are behind the other 3 co-ops.



CO-OPS ARGUMENTS:

4. 1. The 4 co-ops have always acted independently, including local productivity bargaining. The rates of pay in Bandon would, in the majority of cases, be in excess of the rates in the other 3 co-ops even after the application of the €28.57.

2. Some workers in Bandon, e.g. feed mill, shop stores etc. would be approximately €19.05 behind their counterparts in the other co-ops. Management is prepared to address these areas.



RECOMMENDATION:

The Court notes that there has never been a formal pay relationship between Bandon Co-op and the other societies with which comparison is drawn. Whilst considerable significance has been placed by the Union on a claimed assurance given by management of Bandon Co-op. and managers of other societies to apply a common increase, there is no record of those discussions and the Co-op. denies that any such commitment was given.

In all the circumstances, the Court cannot find a basis on which it could recommend concession of the Union's claim. The Court does, however, recommend that the Company's offer to enter discussions aimed at providing increases in pay for those categories whose pay is now below that paid to corresponding categories in the other societies should be accepted by the Union.



Signed on behalf of the Labour Court



Kevin Duffy
29th May, 2002______________________
CO'N/MB.Deputy Chairman



NOTE

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