FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : ABBOTT IRELAND - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Flood Employer Member: Mr Doherty Worker Member: Mr. Somers |
1. New agreement on pay and conditions.
BACKGROUND:
2. Abbott Products Limited, Sligo is a wholly owned subsidiary of Abbott Laboratories, Chicago USA, a healthcare company which employs over 70,000 employees worldwide. The Company does not apply National Pay Agreements, it negotiates its own pay and conditions packages in each of its factories. The pay agreement for general workers in Sligo expired on 31st July 2003. The Union submitted a claim for an 18th month agreement with an increase of 10% for the first 12 months and 6.5% for the next 6 months. It also sought various other improvements in terms and conditions.
The dispute could not be resolved at local level and was the subject of two conciliation conferences under the auspices of the Labour Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on the 25th March, 2004 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 20th May, 2004.
UNION'S ARGUMENTS:
3.1 The Unions request for their claim is based on:
- High taxation,
- The soaring cost of living,
- Inflation figures no longer represent the real increase in the day to day cost of living.
3. Due to the benchmarking exercise in the Public Service, a cleaner working in the Public Service is now entitled to €457.53 per week while the grade of cleaner in the Company is €361.00.
COMPANY'S ARGUMENTS
4.1The Company are operating in a global market and facing intensive competitive pressures. This is reflected by the reduction in employee numbers over the past 5/6 years by over 140 workers.
2. In the past, negotiations have been carried on outside the National Framework on the basis that the Company have always wanted to do what was right for the business. Over the past five National Agreements, the Company has paid better than the National Agreementon three occasions, and on two occasions the same.
3. The current level of inflation is 1.4% and is expected to be around 2% by the end of the year. The Company's offer provides for increases well in excess of this amount.
4. In addition to the basic rate of pay, the Company provides a range of additional benefits to employees, such as: non contributory benefit pension plan, non contributory death benefit and spouses pension, non contributory disability plan, subsidy towards VHI, revenue approved share purchase plan, additional service leave.
RECOMMENDATION:
While it is accepted by both sides that payments in the past exceeded the National Pay Agreements, it is clear that the Company's trading position is currently more difficult. Given this situation and the fact that the Company has offered the terms of the Sustaining Progress Agreement on this occasion, the Court does not recommend concession of the Union's claim.
Signed on behalf of the Labour Court
Finbarr Flood
_31st_May, 2004______________________
JBDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Jackie Byrne, Court Secretary.