INDUSTRIAL RELATIONS ACTS, 1946 TO 2001
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
DUBARRY SHOES LIMITED
- AND -
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
Chairman: Ms Jenkinson
Employer Member: Mr Pierce
Worker Member: Mr. Somers
1. 2% pay increase and 1% lump sum under the review clause of the Programme for Prosperity and Fairness (PPF).
2. The issue in dispute is the Union’s claim for a 2% pay increase to be paid from the 1st of April, 2001, and the payment of a 1% lump sum on 1st April, 2002, under the review clause of the PPF. The Union submitted the claim to the Company on the 11th of April, 2001. It was the subject of a conciliation conference on the 12th of December, 2001, under the auspices of the Labour Relations Commission. Agreement was not reached at conciliation and the Union requested referral to the Labour Court under Section 26(1) of the Industrial Relations Act, 1990. The Court investigated the dispute in Athlone on the 26th of February, 2002.
3. 1. The employees have agreed to pay pauses in all recent wage agreements in response to the Company’s alleged poor performance and claims of inability to pay. The Partnership 2000 Agreement does not expire in the company until the 30th of November, 2003.
2. Virtually all other private sector workers were due a 5.5% increase in April, 2001, while the claimants were half way between a 1.5% and 1% increase. The rising inflation, which prompted the review of the PPF, must have affected the claimants even more than other workers.
3. The fact that the claimants have not reached the 2nd phase of the PPF does not bar payment of the special increases. In the contract cleaning industry P2000 expired in September, 2001, but the 2% increase was paid in April, 2001.
4. 1. The Company is not in a financial position to pay any increases. The Company is the last Irish footwear manufacturer and is struggling to continue manufacturing, when all other companies have gone abroad for their products.
2. At a previous Labour Court hearing on new contract employees’ rates, the Company stated that any concessions on payment would have a detrimental effect on jobs. The Company lost that case and now employs 76 people less than in January, 2000.
3. The parties are still working under P2000, which will not expire until November, 2003. Therefore, they are not bound by the terms of the PPF. In addition, the Union agreed under P2000 not to submit any cost increasing claims other than those provided for in Clauses 2 and 4 during the currency of the Agreement.
The Labour Court accepts that the recent accounts, and the trends evident therein, indicate difficulties for the Company in meeting the Union claims.
However, taking into account the later than usual application of the P.P.F. in this Company, the Court considers some improvement must now be made by the Company in regard to this claim.
The Court recommends that the 2% P.P.F. supplementary increase be paid from the 1st of April, 2001, and that the 1% lump sum be paid on the 1st of October, 2002.
Signed on behalf of the Labour Court
30th May, 2002______________________
Enquiries concerning this Recommendation should be addressed to Dympna Greene, Court Secretary.