Labour Court Database __________________________________________________________________________________ File Number: CD86669 Case Number: LCR10776 Section / Act: S67 Parties: SCOTTISH LEGAL - and - ASTMS |
Claim, on behalf of twenty-two insurance agents based in Dublin, for an increase in expense allowances.
Recommendation:
5. The Court recommends that the proposal which emerged at the
conciliation conference be accepted by both sides and that the
limit on the car loan be raised to #3,000.
Division: CHAIRMAN Mr Collins Mr Devine
Text of Document__________________________________________________________________
CD86669 THE LABOUR COURT LCR10776
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. 10776
PARTIES SCOTTISH LEGAL LIFE ASSURANCE SOCIETY
AND
ASSOCIATION OF SCIENTIFIC, TECHNICAL AND MANAGERIAL STAFFS
Subject:
1. Claim, on behalf of twenty-two insurance agents based in
Dublin, for an increase in expense allowances.
Background:
2. The agents operate throughout the Dublin area and are at
present in receipt of a #19.50 weekly expense allowance. The
Society also operates a preferential car loan scheme for staff, up
to a limit of #2,500 repayable at an interest rate of 3.50%. In
January, 1986 the Union submitted a claim for various improvements
in conditions including a #10 per week increase in expense
allowance and an increased car loan facility to #5,000 at 3.50%
interest. A meeting was held and the Society offered to increase
the weekly expense allowance to #21.00 for the year from 1st May,
1985 to 30th April, 1986 and a further increase to #22.50 for the
year from 1st May, 1986 to 30th April, 1987. The Society also
offered to increase the limit for staff preferential car loans
from #2,500 to #3,500. These offers were not acceptable to the
Union and, on 2nd April, 1986, the matter was referred to the
conciliation service of the Labour Court. A conciliation
conference was held on 27th May, 1986 arising from which a
proposal emerged that the expense allowance be increased by #2.50
per week with effect from 1st May, 1985 and a further #2.50 per
week with effect from 1st May, 1986, for a further 12 month
period. Management were prepared to accept this proposal if the
staff preferential car loan would remain at its existing level of
#2,500 but this was unacceptable to the Union. The matter was
then referred to a full Court hearing which took place on 30th
September, 1986.
Union's arguments:
3. (i) The workers concerned operate as insurance agents and
their work necessitates the use of a car. Although
the Society provides a loan of #2,500 at 3.50% interest
over 2 years, it is not sufficient to purchase a
reliable car. In competitor companies interest free
loans over longer periods are provided. The expense
allowance provided is hardly sufficient to cover the
costs in this country of petrol, car maintenance and
insurance.
(ii) Agents are paid commission plus a basic pay. The
basic pay is 11% of their debit so it is variable.
Agents have to cover their own phone costs and
operate from home. This necessitates some form of an
office facility in their own home which in itself
incurs costs.
(iii) On average Agents would cover 12,000 miles per year
stop/start driving which increases the wear and tear
on a car.
(iv) The Union is prepared to accept the offer of
increased expenses which emerged at conciliation but
is also seeking an increase in the limit on the car
loan to #3,500 at 3.50%.
Society's arguments:
4. (a) The Society's offer of a #1.50p per week increase for
the period 1985/1986 provides for an increase of
approximately 3.2% more than the inflation rate for
the same period. Since early 1986, the cost of
motoring has dropped sharply due to the large
reduction in oil prices which has taken place
worldwide. Consequently, the Society's offer of a
7.14% increase for 1986/1987 shows an increase over
the inflation rate of approximately 4.50 - 5%.
(b) In addition to the two #1.50 per week increases in
expenses, a preferential loan limit increase results
in a benefit to the employee of approximately #60 per
year when compared to the cost of borrowing money at
a commercial rate.
(c) The weekly expense allowance provided to Dublin
agents has been increased significantly more quickly
than the rise in the rate of inflation. In 1984, the
Society increased the weekly expenses by 26.92%.
against an inflation figure of 9.7%, and in 1985, the
increase in expenses was 18.18% against an inflation
figure of 5.2%.
(d) The Society has not been performing satisfactorily in
Ireland, and at present the cost to the Society of
premium collection is significantly higher than that
of its major competitor.
RECOMMENDATION:
5. The Court recommends that the proposal which emerged at the
conciliation conference be accepted by both sides and that the
limit on the car loan be raised to #3,000.
~
Signed on behalf of the Labour Court.
John M. Horgan
___________________
_30th October, 1986.
A. K. / M. F. Chairman.