Labour Court Database __________________________________________________________________________________ File Number: CD86727 Case Number: LCR10944 Section / Act: S67 Parties: GOLDEN VALE - and - ITGWU |
Union claim on behalf of thirty salaried staff for a wage increase under the 25th wage round.
Recommendation:
1987
Division: Ms Owens Mr McHenry Mr Walsh
Text of Document__________________________________________________________________
CD86727 THE LABOUR COURT LCR10944
CC861093 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR10944
Parties: GOLDEN VALE CO-OPERATIVE CREAMERIES LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Union claim on behalf of thirty salaried staff for a wage
increase under the 25th wage round.
Background:
2. Prior to the commencement of the 24th round agreement the
claimants conducted their negotiations separately from other
sections of the workforce and Union. Therefore, following
settlement of the general workers' claims, Management met with the
Irish Transport and General Workers' Union (I.T.G.W.U.) and the
Irish Creamery Managers' Association (I.C.M.A.), to agree a
settlement for the salaried staff. When negotiations on a 24th
round agreement opened the I.T.G.W.U. informed the Society that
this procedure was being changed and that the workers concerned
were now to be involved in the wage claim along with the general
and clerical members. The terms of the agreement which was
finally agreed provided for flat increases of #5 per week from 1st
January, 1984, and #3 per week from 1st January, 1985. A 2% bonus
based on gross earnings which was payable in December, 1984, was
also agreed. The agreement was to terminate on the 31st March,
1985. Subsequent to this agreement, Management and the I.C.M.A.,
which represented all other salaried staff, concluded a 24th round
settlement which provided a 3% increase from 1st January, 1984,
a further 2% from the 1st January, 1985, plus a 2% bonus based on
gross earnings, to be paid in December, 1984. These terms were
also applied to 17 I.T.G.W.U. members (Limerick branch) following
a Labour Court hearing into a dispute regarding their pay claim
(Labour Court Recommendation 9641 refers).
3. In 1985, due to serious losses since 1981, the Society
implemented a major rationalisation programme which included
redundancies and a pay freeze for 1985 and 1986 in respect of
salaried staff and for 1985 only for non-salaried staff. The wage
freeze for 1985 was accepted by all the parties. Under the 25th
round, the following agreement was agreed at local level for
non-salaried staff:
.#150 lump sum in respect of 1985
.3% from 1st January, 1986
.2.5% from 1st October, 1986
.2.5% from 1st January, 1987
.2.5% from 1st April, 1987
.Termination date 30th June, 1987.
The I.T.G.W.U. claimed that these terms should be applied to the
claimants as they had been part of the local level discussions
which led to the agreement. This was rejected by Management and
on the 19th June, 1986, the Union referred the matter to the
conciliation service of the Labour Court. At a conciliation
conference in Charleville on the 31st July, 1986, the Society made
the following offer:
.#200 once-off lump sum payment in respect of
1986
.5% - 1st January, 1987 - 30th September, 1987
.2% - 1st October, 1987 - 31st March, 1988
.3% - 1st April, 1988 - 30th June, 1988.
It also offered to bring the claimants' rates back into line with
those of the I.C.M.A. members and the I.T.G.W.U. members (Limerick
Branch), and to make good any losses sustained (the claimants'
24th round settlement was not as attractive as the one secured by
the I.C.M.A. and the I.T.G.W.U. (Limerick Branch) for their
salaried members). This offer was rejected by the Union and the
matter was referred to the Labour Court for investigation and
recommendation on the 12th September. A Court hearing was held in
Cork on the 3rd December, 1986, the earliest date suitable to the
parties.
Union's arguments:
4. (a) The salaried staff were at all times represented at the
discussions and negotiations on the 25th round claim
and also took part in the ballot on the final
proposals. It was only after agreement had been
reached that Management informed the Union that the
claimants were not included in the settlement and that
their salaries were to be frozen during 1986.
(b) The Society's offer is unacceptable as it effectively
means a pay pause for 1985 and 1986 except for a #250
lump sum for 1986, to be incorporated into scales on
the 1st January, 1987. This 21 month pay pause would
cause severe hardship to the claimants especially as
their salary scales are among the lowest scales in the
employment.
(c) The Union can demonstrate that a procedure was accepted
by both parties at the start of the 24th round
negotiations that salaried staff who were members of
the I.T.G.W.U. would from then on be part of the
general and clerical workers wage settlements.
Management for its part insisted that the procedure
should apply when Union claims were later made. All
through negotiations on the 25th round Management were
aware of the claimants position and did not at any
stage indicate that any difficulty existed about paying
whatever terms would be agreed to the salaried members.
(d) The claimants strongly believe that a fundamental
principal is at stake here. Having included themselves
in the general and clerical workers' 24th round claim
they were obliged to accept whatever terms were
negotiated by the group they were associated with.
Management, in now attempting to divorce them from the
terms negotiated by that same group under the 25th
round, is not being consistent. If it wants to change
the negotiation procedures for the future then this can
be discussed through the agreed procedures. In the
meantime Management should now apply the terms agreed
for the general and clerical staff to the claimants.
Society's arguments:
5. (i) It is the Society's view that it is neither practicable
nor good industrial relations practice to have the same
grades of workers, represented by different unions,
getting different pay increases which results in
different rates of pay applying to people doing the
same job, depending on which union they belong to.
Therefore, in the interest of an ongoing and sensible
industrial relations policy, the Society is prepared to
bring the claimants' salaries into line with those paid
to I.C.M.A. members and I.T.G.W.U. (Limerick Branch),
members to ensure that all salaried staff with similar
service/experience be paid the same rate of pay for
doing the same job and that the losses suffered over
the period of the previous pay agreement be reimbursed
to the claimants (I.T.G.W.U., Mallow branch). This
will cost the Society approximately #18,000.
(ii) The period to 31st December, 1986, should be resolved
on the basis of the #250 lump sum, payable in December,
1986, and this be consolidated into salaries with
effect from 1st January, 1987.
(iii) The Society's final offer of the payment and
subsequent consolidation into salary scales of the
above-mentioned #250 plus the following final offer of:
.5% - 1st January, 1987 - 30th
September, 1987
.2% - 1st October, 1987 - 31st March,
1987
.3% - 1st April, 1988 - 30th June,
1988.
is fair and reasonable and should be accepted by the
claimants.
(iv) The Society has been recording losses since 1981
and has been forced to introduce wage freezes and cost
cutting measures, including 232 redundancies, in an
effort to return to profitability.
(v) Since 1980, it has been involved in the 'Munster milk
wars' (not by choice), where it has lost approximately
12 million gallons of milk because of its inability to
pay a competitive price for milk. The loss of this
milk was exacerbated by the introduction of the milk
superlevy which curtailed growth.
(vi) The inclement weather conditions for farmers during
1986, following the previous year's bad weather,
resulted in a significant drop in milk yields with a
consequent substantial increase in farmers'
indebtedness to the Society. The scale of this
indebtedness will take farmers a number of years to
clear, during which time the Society will have to carry
the cost through increased borrowings.
(vii) The general oversupply situation in both the domestic
and export markets has resulted in reduced margins for
the Society. Furthermore, the changes in the
intervention payment system have also reduced its
returns. Originally, payment was thirty days after
invoicing but this has gradually been extended to the
present position of payment 240 days after which has
resulted in increased borrowings and pressure on the
Society's cash flow.
RECOMMENDATION:
6. In its consideration of the submissions by the parties to the
dispute, the Court has come to the conclusion that there is a
sound basis for the Company's proposal that there be a
regularisation of the salary structure of the grade of workers
here concerned within the Company, and recommends that this
objective be accepted by the Union and that the Company implement
its proposals as outlined to the Court. In relation to the
increase itself, the Court recommends that the Company amend its
offer in relation to the 25th round pay claim to:
.#250 lump sum payable in January, 1987 and
consolidated into basic from the 1st January,
1987.
.5% increase from the 1st January, 1987, to
30th June, 1987, and a further 2.5% from the
1st July, 1987. Agreement to terminate on the
31st December, 1987.
~
Signed on behalf of the Labour Court
Evelyn Owens
________________________
Deputy Chairman.
19th January, 1987.
D.H./J.C.