Labour Court Database
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File Number: CD86833
Case Number: LCR10868
Section / Act: S67
Parties: LEADA ACROW LTD. - and - ITGWU
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Subject:
Claim, on behalf of one sales representative for an increase in basic pay.
Recommendation:
5. The Court notes that:
(a) since the take over of Acrow in 1984 by Leada Acrow
Limited, the method of computing the claimants annual
gross earnings has altered.
(b) the Company is anxious to implement a bonus based on
targets.
(c) the Company is prepared to implement some improvement
in subsistence allowances.
Accordingly, the Court recommends that negotiations on items (b)
and (c) above be finalised as a matter of urgency and taking into
account the fact that the period since "take-over" is relatively
short the Union's claim for an increase on basic salary be
deferred.
Division: Ms Owens Mr Heffernan Mr Walsh
Text of Document__________________________________________________________________
CD86833 THE LABOUR COURT LCR10868
CC861280 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR10868
PARTIES: LEADA ACROW
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
AND
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim, on behalf of one sales representative for an increase
in basic pay.
Background:
2. The worker concerned commenced employment as a sales
representative with Acrow Limited in 1974. In November, 1984
Acrow Limited was taken over by Leada Limited now trading as Leada
Acrow, a British based company supplying scaffolding equipment to
the building trade. Prior to the takeover the worker was paid on
the basis of a salary plus commission, as follows:
Basic and Commission
1979/1980 #11,153.00
1980/1981 #11,266.00
1981/1982 #10,643.00
1982/1983 # 9,956.00
1983/1984 # 8,999.00
Following the takeover the commission was consolidated into basic
salary and a twice yearly bonus was paid so that his income in
1984/1985 was #10,998 and in 1985/1986 was:-
Basic Salary #9,923
Sept '85 Bonus #1,250
March '86 " #1,300
_________
#12,473
_________
In 1986/1987 it was:
Basic Salary #10,592.00
Sept '85 Bonus # 1,000.00
March '87 " yet to be determined.
On 11th July, 1985 the Union wrote to the Company seeking a
meeting to discuss an increase in his salary which, it contended,
had not kept pace with the increase in the cost of living over the
period since 1980. Following further communications a meeting was
eventually arranged for 23rd July, 1986. The Union sought a
#15,000 p.a. salary plus bonus, while the Company offered
#10,592.80. The worker is also in receipt of the following and
these matters were also discussed:-
- Subsistence Allowance: #1 per day plus receipted expenses
- Telephone Allowance: 75% of cost
- Transport: Company car
- Health cover: V.H.I.
- Working week: 37.50 hours
- Annual leave: 20 days
No agreement being reached, the matter was referred, on 25th July,
1986, to the conciliation service of the Labour Court. A
conciliation conference took place on 30th September, 1986.
Again, no agreement was reached, however and the matter was
referred to a full hearing of the Labour Court. The hearing took
place on 27th November, 1986.
Union's arguments:
3. (i) The Union considers that the worker's salary has not
kept pace with cost of living increases over the
period since 1980. If his salary had increased in
line with the Consumer Price Index it would have risen
to #20,071. The worker, prior to the letter of 11th
July, 1985 had tried to point out to the Company that
his salary was falling in real and absolute terms.
His 1985 salary of #10,988 was worth #6,153 in 1980
terms. The Union considers that its claim, in the
circumstances, is a modest one.
(ii) The Union is also seeking an improvement in other
conditions such as subsistence allowance.
Company's arguments:
4. (a) If the Company had continued the worker's previous
method of payment after the November 1984 takeover, he
would not have enjoyed the same increases which he has
received since 1984. Up to 1st April, 1986, his
earnings have increased by 38.6%, since the Leada
takeover in November, 1984. In 1986/1987, his basic
salary has been increased by 6.75% which compares more
than favourably with wage increases granted under the
current wage round particularly in the construction
industry. Furthermore, the worker has a guarantee from
the Company that bonus payments will continue. Since
the takeover, these have been paid on a performance
appraisal basis pending the introduction of a bonus
system to be calculated on a target basis.
(b) The maximum earnings of similar representatives
employed by the Company in Northern Ireland and U.K.
currently stands at #10,000 per annum including bonus.
Allowing for differences in the Irish Punt v Sterling;
tax regimes and cost of living, this worker's earnings
compare favourably with the best within the Company.
(c) The worker's earnings also compare favourably with
those in the construction/engineering sector generally
(details supplied to the Court).
RECOMMENDATION:
5. The Court notes that:
(a) since the take over of Acrow in 1984 by Leada Acrow
Limited, the method of computing the claimants annual
gross earnings has altered.
(b) the Company is anxious to implement a bonus based on
targets.
(c) the Company is prepared to implement some improvement
in subsistence allowances.
Accordingly, the Court recommends that negotiations on items (b)
and (c) above be finalised as a matter of urgency and taking into
account the fact that the period since "take-over" is relatively
short the Union's claim for an increase on basic salary be
deferred.
~
Signed on behalf of the Labour Court.
Evelyn Owens
____14th January,__1987. _________________
A. K. / M. F. Deputy Chairman