Labour Court Database
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File Number: CD87838
Case Number: LCR11640
Section / Act: S67
Parties: GAELTARRA KNITWEAR LIMITED - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION
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Subject:
Claim by the Union on behalf of 120 knitwear machinists for the application of the Hosiery and Knitwear Joint Industrial Council (J.I.C.) increase.
Recommendation:
5. In the light of the disimprovement in the Company's trading
position this year, the Court recommends that the Union agree to a
further deferrment until 1st March, 1988, of the increase which it
was agreed would be paid on 1st October, 1987.
6. In return the Company should undertake to make good the loss
resulting from the deferrment when the financial state of the
Company allows it. The matter should be reviewed in June, 1988,
and the Court will assist if requested.
Division: CHAIRMAN Mr Heffernan Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD87838 RECOMMENDATION NO. LCR11640
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: GAELTARRA KNITWEAR LIMITED
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim by the Union on behalf of 120 knitwear machinists for
the application of the Hosiery and Knitwear Joint Industrial
Council (J.I.C.) increase.
BACKGROUND:
2. The workers in the Company are covered by the Hoisery and
Knitwear J.I.C. On 14th April, 1987, the Union lodged a claim for
the implementation of the J.I.C. agreement, which is as follows -
13 month duration - from 1st December, 1986, to 31st December,
1987,
One month pay pause, and
5% increase from the 5th January, 1987.
The Company pleaded inability to pay the increase and indicated
that it was seeking a reduction in costs in an attempt to save
jobs and to keep the business open. Following protracted
negotiations the parties agreed to a 13 month agreement from 1st
December, 1986, with a 5% increase from the 1st October, 1987,
with a rider that the offer was subject to the Company's
performance in the interim. On 16th September, 1987, the Company
informed the Union of its ongoing problems and that it was seeking
a further deferral of the wage increase to March, 1988. The Union
was not prepared to agree to this. On 18th September, 1987, the
dispute was referred to the conciliation service of the Labour
Court. As agreement was not reached at a conciliation conference
held on 4th November, 1987, the matter was referred to the Labour
Court, on 5th November, 1987, for investigation and
recommendation. A Court hearing took place on 14th December,
1987, in Castlebar.
UNION'S ARGUMENTS:
3. 1. The agreement of April, 1987, to defer the increase till
October, 1987, also stated that if there were any further
difficulties "then a meeting will be arranged and employees
will be required to make a decision with regard to
implementation". The employees have made the decision. They
want the increase paid. The Company should honour its
agreement with the Union.
2. The workers concerned feel they have demonstrated their
committment and good faith by deferring their increase from
January to October, 1987. They have also been flexible in
respect of wage round applications on previous occasions, in
an effort to be helpful towards the Company. They are no
longer prepared to make any further concessions while the
Company reneges on the agreement.
COMPANY'S ARGUMENTS:
4. 1. The Company is experiencing on-going difficulties in the
market place. On both the home and U.S.A. market, orders are
down 20-30%. Over the last two years heavy losses have been
experienced, (details provided to the Court), and should this
continue next year, then serious problems face the management
and workforce.
2. The Company now seeks deferral of the 5% increase to
March, 1988, in order to maintain the present workforce and
to try and reach 1988, in the hope that the market will have
improved. If the Company is unable to afford the increase in
March, 1988, then it will be left with no alternative but to
restructure or close down.
RECOMMENDATION:
5. In the light of the disimprovement in the Company's trading
position this year, the Court recommends that the Union agree to a
further deferrment until 1st March, 1988, of the increase which it
was agreed would be paid on 1st October, 1987.
6. In return the Company should undertake to make good the loss
resulting from the deferrment when the financial state of the
Company allows it. The matter should be reviewed in June, 1988,
and the Court will assist if requested.
~
Signed on behalf of the Labour Court
John M. Horgan
______________________
12th January, 1988
B.O'N./P.W. Chairman