Labour Court Database __________________________________________________________________________________ File Number: CD87794 Case Number: LCR11595 Section / Act: S67 Parties: TEDCASTLE AVIATION FUELS LIMITED - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
Claim for the introduction of productivity payments in line with those prevailing at Irish Shell Limited.
Recommendation:
5. The Court having considered the submissions from both parties
does not recommend concession of the Union's claim.
However, as a means of resolving the problem the Court recommends
that the employees voluntary contribution of 5% should cease from
1st November, 1987 and that the employees agree to the two changes
in current arrangements as set out on page 2 of the Company's
submission.
Division: Ms Owens Mr McHenry Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD87794 RECOMMENDATION NO. LCR11595
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: TEDCASTLE AVIATION FUELS LIMITED
AND
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim for the introduction of productivity payments in line
with those prevailing at Irish Shell Limited.
BACKGROUND:
2. 1. The Company which was established at Shannon in 1980
operates in the fuel distribution industry and currently
employs 9 permanent and 2 part-time staff working a three
cycle shift. The Company is engaged in loading aviation fuel
from ground storage tanks via trucks on to commercial and
private aircraft using Shannon Airport.
2. The Company generates its income from a handling charge
per gallon paid by the airlines using its service. There are
two other fuel companies operating out of Shannon as well
namely Irish Shell Limited and Esso Teoranta.
3. Up until 1982/1983 the companies negotiated pay and
conditions on a national basis, but at that time a decision
was taken that they would in future negotiate their own
agreements.
4. In July, 1983 the Company and the Union commenced
negotiation on a claim for parity with the other two companies
as those companies had concluded productivity agreements with
their respective workforces. Following the negotiations the
Company conceded the increases that had been paid to Irish
Shell Limited. One of the conditions attached to the
productivity agreement was that the workers would have 5%
deducted from basic rate plus shift premium because Irish
Shell workers were paying 5% towards their pension scheme.
5. In 1985 Irish Shell Limited, finalised another
productivity agreement and the Union again claimed similar
increases which were conceded. Late in 1986, Irish Shell
Limited finalised phase 2 of the 1985 productivity agreement
which provided for an increase of #20 a week on basic pay and
an additional day's annual leave for 1985 and 1986. The Union
again claimed a similar increase. This was rejected by the
Company.
2. 6. The matter was referred to the conciliation service of the
Labour Court on 18th June, 1987. A conciliation conference
was held on 26th August, 1987. Following further local
discussions both parties agreed to a referral to the Labour
Court for investigation and recommendation on the issue on
27th October, 1987. A Court hearing was held in Limerick on
25th November, 1987.
UNION'S ARGUMENTS:
3. 1. From day one when the Company set up operations the rates
of pay and conditions of employment were linked to the other
refuelling companies.
2. In 1983 a specific relativity was established with Irish
Shell Limited. The relativity cost the workers 5% which is
still being deducted each week.
3. All productivity measures conceded by Irish Shell workers
have been in operation in the Company and in some instances
even before they were introduced in Irish Shell. In addition
measures have been introduced that are not acceptable to
workers in other companies (details supplied to the Court).
4. All measures conceded by Irish Shell workers in phase 2 of
their agreement have already been conceded by the workers
concerned.
COMPANIES ARGUMENTS:
4. 1. Tedcastle Aviation Fuels does not own or sell any of the
fuel products it loads on the aircraft passing through
Shannon. The Company generates its entire revenue from a
handling charge per gallon paid by the airlines using its
services. It should be noted that T.A.F. is part of the
Tedcastles Group nationally but that it operates strictly on a
"stand alone commercial basis". Irish Shell Limited on the
other hand is part of a highly integrated multinational which
is involved in all aspects of the oil industry from its
drilling and retrieval to its refining and distribution.
Irish Shell unlike T.A.F. therefore, has a much wider scope of
opportunity to generate both revenues and economies.
2. The claim for productivity increases which are solely
based upon a rationalisation effected in another company
should fail as any of the benefits conferred on Irish Shell
Limited by its rationalisation programme will not
automatically flow to T.A.F. The Company wish to emphasise
that it is not seeking any redundancies which could perhaps
generate savings and increased productivity and so it is
firmly of the view that it should not have to conceed this
claim.
4. 3. At conciliation in attempting to reach a solution to the
impasse, the Company were prepared to move as follows:-
that of the five per cent currently contributed by the
employees to their pension fund, that the Company would agree
to fund three per cent of that. This offer would represent an
increase in pay of between #10.92 and #11.27 per week to the
claimants. In return for this concession the Company required
two minor changes in current arrangements:-
1. Full one man fueling of all aircraft when such an
operation becomes technically feasible and when required
by management.
and
2. Flexibility in relation to shift patterns to enable one
man on shift to commence at 0600 if required.
RECOMMENDATION:-
5. The Court having considered the submissions from both parties
does not recommend concession of the Union's claim.
However, as a means of resolving the problem the Court recommends
that the employees voluntary contribution of 5% should cease from
1st November, 1987 and that the employees agree to the two changes
in current arrangements as set out on page 2 of the Company's
submission.
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Signed on behalf of the Labour Court.
Evelyn Owens
__17th___December,___1987. ___________________
M. D. / M. F. Deputy Chairman