Labour Court Database __________________________________________________________________________________ File Number: CD87186 Case Number: LCR11178 Section / Act: S67 Parties: FUE - and - ATGWU |
Claim on behalf of approximately 80 workers under the 26th wage round for (i) substantial increase in wages, (2) reduction in working week from 40 hours to 35 hours without loss of pay (3) extra days holidays, (4) machine money to be increased by 100% and (5) drivers rates of pay to be increased.
Recommendation:
1986
Division: Ms Owens Mr McHenry Mr Walsh
Text of Document__________________________________________________________________
CD87186 THE LABOUR COURT LCR11178
CC8790 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11,178
Parties: KAYFOAM WOOLFSON LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
AND
AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim on behalf of approximately 80 workers under the 26th
wage round for (i) substantial increase in wages, (2) reduction in
working week from 40 hours to 35 hours without loss of pay (3)
extra days holidays, (4) machine money to be increased by 100% and
(5) drivers rates of pay to be increased.
Background:
2. The Company manufacturers polyurethane foam and a variety of
bedding products. The Company supplies both home and export
markets with approximately 65% of its total turnover being
exported mainly to the U.K. The 25th wage round expired at the
end of November, 1986. The Union lodged the above mentioned
claims by letters dated 18th November and 17th December, 1986. At
a meeting held on 12th January, 1987 the Union quantified the
claim for a wage increase at #20 a week. At the meeting the
Company made an offer of 4% increase in pay and an increase of
25p per week on machine money (present rate #3.75 a week) with no
concession on the other elements of the claim. As this did not
meet the Union's aspirations the matter was referred to the
conciliation service of the Labour Court on 15th January, 1987. A
conciliation conference was held on 6th March, 1987. As no
agreement was possible both parties agreed to refer the matter to
the Labour Court for investigation and recommendation. A Labour
Court hearing was held on 16th April, 1987.
Union's arguments:
3. (a) The workers concerned are lowly paid and feel justified
in seeking #20 per week increase. The current rates of
pay are male #131.65 per week, female #112.40, with pro
rata for juniors'. The opportunity to earn in excess
of basic rates are minimal as there is no production
bonus or incentive arrangements except the occasional
overtime.
(b) Reduced working hours: The workers feel that a
reduction in working hours would be to their benefit
and is justified on the grounds that the materials they
work with and their conditions of work render them
prone to tiredness (details supplied to the Court).
(c) Extra days holiday: The workers have 20 days holidays
at this time, but do not have the benefit of service
holidays or payment for occasional days when workers
would have to take time off for family problems or
occasional days through illness. The workers feel the
need for a couple of flexible days holidays in addition
to the present entitlement of 20 days.
(d) Increase in machine money: There are 16 people of the
total production workforce in receipt of machine money
which currently stands at #3.75 per week. The payment
of #3.75 per week is totally inadequate for the care
and responsibility which the workers carry to a high
degree. The Union feel justified in seeking a new rate
of #7.50 per week.
(e) Increase in rates of pay for drivers: At present the
Union represents 6 men on transport two of whom are
drivers. The rate of allowance applicable to the
drivers is the same as applies to machine operatives
#3.75 per week. There is no way that drivers of heavy
duty trucks are only receiving #3.75 per week for such
responsible duties. We are claiming that the drivers
rate should be increased by #6.25 per week to yield a
drivers rate of #10.00 per week. The type of vechicles
are heavy duty Ford swop bodies and rigid trucks.
Company's arguments:
4. (i) The business environment in which the Company
operates is a difficult one (details supplied to the
(Court). It is imperative that any increased costs
should be kept to a minimum having regard to
excessive dependance of the Company on the export
market and it's need to remain cost competitive
therein.
(ii) The Company has indicated that they cannot concede
the level of claims sought by the Union but they are
however willing to explore further the possibility of
a settlement. The Company has responded in a
positive manner on two elements of the claim i.e.
increase in wages and machine money, and they have
indicated their willingness to discuss the
possibility of an increase in annual leave.
(iii) The claim for an increase of pay raises a very
complex issue. The Union and the Company has
previously concluded an employment agreement which
was registered with the Court. Part of this
agreement deals with flexibility and provides that
drivers may be utilised in other areas of the factory
and are paid an allowance in the form of machine
money for this flexibility.
(iv) The Company has been and is applying itself
vigorously to developing it's product range and
markets which is aimed at securing it's future
viability and also the stability of employment within
the firm. The Company has a consistent record in
meeting it's obligations under various agreements
whether they be at local or national level and is
asking that recognition of this effort be given
through the adoption of a reasonable stance from the
Union in wage negotiations. The Company is not
satisfied that the Union's claim as specified is a
reasonable one.
RECOMMENDATION:
5. The Court having considered the submissions from both parties
recommends as follows in relation to the various items contained
in the claims.
(1) Increase in Wages:- The basic rate of #131.65 to be
increased by 5% and the rate of
#112.40 to be increased by 6%.
(2) Working Hours:- No reduction.
(3) Extra Holidays:- One extra day commencing holiday year
1987.
(4) Machine Money:- Increase from #3.75 to #4.50 per
week.
(5) Drivers Rates:- The Court does not recommend
concession of the claim for an
additional increase in the driver's
rate within the context of this
claim.
The Agreement to extend for a 12 month period from 1st December,
1986.
~
Signed on behalf of the Labour Court.
Evelyn Owens
____19th____May,____1987. ___________________
M. D. / M. F. Deputy Chairman