FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : FAIR OAK FOODS LIMITED - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Grier Worker Member: Ms Ni Mhurchu |
1. Non payment of 4% pay increase due under Programme for Prosperity and Fairness (PPF) on 1st of January, 2003.
BACKGROUND:
2. The Company operates 2 beef processing plants in Clonmel and Bagenalstown. Due to poor trading conditions, the Company was forced to close the Clonmel plant from Christmas, 2002, to the 10th of June, 2003. During the period, 15 workers in Clonmel were employed in Baganelstown, while a further 55 were on lay-off. The Company has now also curtailed activity in Bagenalstown. The Union's claim is for payment of the final 4% of the PPF at the Clonmel plant. The Company is pleading an inability to pay.
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 on the 11th of September, 2003, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 2nd of December, 2003, in Thurles, the earliest date suitable to the parties.
UNION'S ARGUMENTS:
3. 1. The rate of pay in the Company is very poor.Whilst the Union acknowledges that the Company is experiencing financial difficulties, the workers cannot afford to forgo the increases due to them.
2. A large number of workers made substantial sacrifices when the Clonmel plant was closed for 6 months.The workers who did go to Banenalstown were not paid a bonus and also had additional travelling expenses.
COMPANY'S ARGUMENTS:
4. 1. The Company is experiencing severe financial difficulties. Estimated losses for this year could be €400,000 to €600,000. To concede the Union's claim would cost €150,000 and put an intolerable demand on business.
2. The Company has asked the Union to put a hold on payment of the PPF until September, 2004, when it will review the situation.
3. Since the Clonmel plant re-opened in June, 2003, workers have enjoyed increased earnings.
RECOMMENDATION:
The Court has considered the submissions of the parties. The Court recommends that the outstanding payment of 4% should be paid in the following manner:-
2% with effect from 1st September, 2003
2% with effect from 1st March, 2004
with retrospection to the due date of 1st January, 2003, paid within 12 months from the date of this recommendation. The Company should identify the arrears due to each worker.
Signed on behalf of the Labour Court
Caroline Jenkinson
6th January, 2004______________________
CON/MB.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.