Labour Court Database
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File Number: CD93354
Case Number: LCR14207
Section / Act: S26(1)
Parties: IRISH SNACK FOODS COMPANY - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION;MANUFACTURING SCIENCE FINANCE
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Subject:
Claim for payment of the third phase of the Programme for Economic and Social Progress (P.E.S.P.).
Recommendation:
5. The Court notes the Company's undertaking that it will keep
the Union informed of its financial position on a regular basis.
In the light of the information supplied the Court considers that
the parties should agree to review the position with regard to
implementing Phase 3 of P.E.S.P. from the 1/10/92 in April, 1994.
If the parties cannot reach agreement at that stage they should
remit directly to the Court for recommendation.
Division: Ms Owens Mr Brennan Mr Rorke
Text of Document__________________________________________________________________
CD93354 RECOMMENDATION NO. LCR14207
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: IRISH SNACK FOODS COMPANY
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
MANUFACTURING SCIENCE FINANCE
SUBJECT:
1. Claim for payment of the third phase of the Programme for
Economic and Social Progress (P.E.S.P.).
BACKGROUND:
2. 1. The Company is located in the Bunbeg Industrial Estate,
Bunbeg, County Donegal where it is engaged in the manufacture,
sale and distribution of crisps and other snack foods to the
Republic of Ireland market. The Company presently employs 49
people, and was purchased by the present owners from Gilbeys
of Ireland on 17th August, 1992.
2. The third phase of P.E.S.P. was due in the Company on the
1st October, 1992. The Company, at a number of local meetings
with the Union, claimed inability to pay. On 13th November,
1993, the Union referred the matter to the Labour Relations
Commission and conciliation conferences were held on 14th
January, 1993 and 24th March, 1993. Agreement could not be
reached and the issue was referred by the Labour Relations
Commission to the Labour Court on the 14th June, 1993. The
Court investigated the matter on the 21st September, 1993 in
Donegal.
UNION'S ARGUMENTS:
3. 1. The third phase of P.E.S.P. was due on 1st October, 1992
and it is unfair to ask workers to forego this.
2. In a rationalisation programme in the Company the workers
co-operated and made major sacrifices, including substantial
job losses, short-time working, loss of shift premia,
reduction in overtime, excluding overtime from holiday pay
calculation and other changes which had severe adverse affects
on the workers.
3. The worker's pay levels are out of line with other local
employments.
COMPANY'S ARGUMENTS:
4. 1. The Company is unable to pay the third phase of P.E.S.P.
2. The crisp and snack market is small and the Company's
share of that market is approximately 5%.
3. The Company, due to its limited share of the market, is
vulnerable to price movements.
4. The Company has invested heavily in new equipment and is
considering further capital investment in 1994.
5. The Company will inform the Union of its financial
position on a regular basis.
RECOMMENDATION:
5. The Court notes the Company's undertaking that it will keep
the Union informed of its financial position on a regular basis.
In the light of the information supplied the Court considers that
the parties should agree to review the position with regard to
implementing Phase 3 of P.E.S.P. from the 1/10/92 in April, 1994.
If the parties cannot reach agreement at that stage they should
remit directly to the Court for recommendation.
~
Signed on behalf of the Labour Court
Evelyn Owens
___________________
4th October, 1993. Deputy Chairman.
P.O'C./J.C.
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Paul O'Connor, Court Secretary.