Labour Court Database
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File Number: CD87395
Case Number: LCR11252
Section / Act: S67
Parties: ADVANCE TYRE CO. - and - ITGWU
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Subject:
Claim, by the Union on behalf of approximately 150 workers, under the 26th Wage Round.
Recommendation:
6. In the light of evidence presented, the Court recommends a
26th Wage Round Agreement as follows:
3%from 1st January, 1987 for eight months,
3% from 1st September, 1987, for six months.
The Agreement to terminate on 29th February, 1988.
Division: Mr Fitzgerald Mr Heffernan Mr Walsh
Text of Document__________________________________________________________________
CD87395 THE LABOUR COURT LCR11252
CC87546 INDUSTRIAL RELATIONS ACTS 1946 TO 1976
RECOMMENDATION NO. 11252
PARTIES: ADVANCE TYRE COMPANY LIMITED
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim, by the Union on behalf of approximately 150 workers,
under the 26th Wage Round.
Background:
2. The 25th Wage Round Agreement expired on 31st December, 1986.
On 5th February, 1987, the Union on behalf of its members lodged
the following 26th Wage Round claim with the Company:
- 10% increase for 12 months.
During the course of negotiations on 10th February, 1987, the
Union indicated that the minimum it was willing to accept was 6%
for 12 months. The Company undertook to consider the claim and
respond within a few days. On 12th February, 1987, the Company
responded with the following offer -
- 12 month agreement,
- 3% from 1st January, 1987,
- 2% from 1st July, 1987.
The Union rejected this offer and on 2nd April, 1987, the matter
was referred to the conciliation service of the Labour Court.
3. At a conciliation conference held on 15th May, 1987, (an
earlier date being unsuitable to one of the parties), the Union
indicated that it would consider 6% phased over 12 months.
However, the Company maintained its position arguing that its
present basic rates are ahead of competitors. The Company also
pointed out that under a profit-sharing scheme, which it outlined
after the rejection of its pay offer of 13th February, 1987,
opportunities exist to enhance earnings. In the absence of
agreement the matter was referred to the Labour Court, on 15th
May, 1987, for investigation and recommendation. A Court hearing
took place on 15th June, 1987. The Court's recommendation issued
to the parties by letter on 17th June, 1987
Union's arguments:
4. (i) The economic conditions in the country over the last
number of years have decimated the living standards of
Irish workers. In the period mid-November, 1979, to
mid-August, 1986, the C.P.I. figure rose 108%. Wage
increases have not kept up with inflation. Now that
inflation in dropping the Company quote this fact,
however, when it was running high they did not want to
know about inflation.
(ii) A large number of other companies have reached 26th
Round settlements in excess of 6% for 12 months
(details provided to the Court). Indeed, the Labour
Court has issued Recommendations in relation to the
26th Round for settlements in excess of this claim.
(iii) On the occasion of the 25th Wage Round, one of the
Company's main competitors, Dunlops, conceded a better
settlement than this Company. At one time there was
parity of settlements between these companies.
Company's arguments:
5. (a) The Company is in a loss making situation. It is
imperative that these losses be 'turned around' in
order to preserve employment. The Company's offer of
5% phased over 12 months equates to #70,000 plus.
This amount cannot be generated by the Company and
given the losses, it is all its owners will provide.
Therefore the Company's offer is very reasonable.
(b) The Company's pay rates are higher than those of its
main competitors and its offer is comparable with that
of its main competitors.
(c) The Company is operating a profit-sharing scheme which
will give the workers an opportunity to enhance
earnings.
/....
RECOMMENDATION:
6. In the light of evidence presented, the Court recommends a
26th Wage Round Agreement as follows:
3%from 1st January, 1987 for eight months,
3% from 1st September, 1987, for six months.
The Agreement to terminate on 29th February, 1988.
~
Signed on behalf of the Labour Court
17th June, 1987 Nicholas Fitzgerald
B.O'N./P.W. Deputy Chairman