Labour Court Database __________________________________________________________________________________ File Number: CD87810 Case Number: LCR11598 Section / Act: S67 Parties: BUS EIREANN - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
Claim for compensation for loss of earnings.
Recommendation:
5. The Court is satisfied that there is an element of
re-organisation involved on the changes implemented in September,
1987, and accordingly recommends payment of compensation at the
rate of half the annual loss to the claimants.
Division: Ms Owens Mr Heffernan Mr Walsh
Text of Document__________________________________________________________________
CD87810 RECOMMENDATION NO. LCR11598
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: BUS EIREANN
AND
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim for compensation for loss of earnings.
BACKGROUND:
2. Following the opening of a new school in Crookstown attended
by about 20 children who previously went to school in Macroom,
school bus services have been re-organised. As a result of the
ensuing changes to their duty boards, 6 drivers have suffered
losses of earnings. There are two duty boards involved, and the
Union states the loss to each driver ranges from #176.00 to
#1,403.00 per annum. The Union on behalf of the workers concerned
served a claim on the Company for compensation for loss of
earnings. The Company were not prepared to concede compensation
to the workers concerned. Agreement was not reached at local
level, and on 24th June, 1987, the matter was referred to the
conciliation service of the Labour Court. A conciliation
conference took place on 28th July, 1987. No agreement was
reached, and on 29th October, 1987, the matter was referred to the
Labour Court for investigation and recommendation. A Court
hearing took place in Cork on 2nd December, 1987.
UNION'S ARGUMENTS:
3. 1. The loss suffered by the workers is a major one. They
have geared their commitments on the expectation that the work
available would remain with them. The Company's proposal
constitutes a major re-organisation of the school bus
operation in the Macroom area. Custom and practice has been
to pay compensation in these cases. The Court itself has
recognised this important factor in many of its
recommendations.
2. The Company has argued that the change is due to loss of
business, in so far as there is a loss of passengers, this is
not so. What the Company has done is to increase the carrying
capacity of the contract school bus operation, thus depriving
the Union's members of the opportunity of doing it.
3. Because Macroom depot is over 25 miles away from the
parent depot at Capwell, the opportunity for the workers here
concerned to participate and share in any overtime available
there does not arise. Therefore the only opportunity for the
workers here concerned to earn extra income is now denied to
them.
3. 4. The Company has not treated its employees in a fair way.
It took from the workers their only means of earning extra
income, without offering any form of restitution. The Union
calls on the Court to recommend in favour of the workers.
COMPANY'S ARGUMENTS:
4. 1. The Company had adhered to existing agreements and has
given the required notice in this case.
2. The changes have been brought about by a decline in the
number of school children availing of the services.
3. Similar revisions of operations have taken place in the
past and no compensation for loss of earnings was paid.
4. The payment of compensation for loss of earnings in these
cases would have serious financial repercussive effects on
Management's ability to revise operating boards which has to
be done from time to time because of loss of business or to
meet customer demands.
5. When operating boards are changed or overtime is reduced,
as has happened elsewhere in the Company no compensation for
loss of earnings was paid.
6. Bus Eireann is striving to adhere to Government directive
to break even by 1989 if the situation were to arise where
compensation for loss of earnings had to be paid for minor
alterations in operating boards and reduction in overtime it
would further aggravate an already difficult financial
situation.
7. The Labour Court have on previous occasions and
particularly in recommendation No. 8,118 declined concession
of similar compensation for loss of earnings claims.
8. As regards the elimination of morning overtime for the
late shift driver this was done to ensure that these services
are operated as economically and efficiently as possible. The
payment of compensation would be an additional expense to the
cost of operating the school bus services at a time when the
Government is examining all areas of public expenditure and
especially education with a view to reducing the national
debt.
RECOMMENDATION:
5. The Court is satisfied that there is an element of
re-organisation involved on the changes implemented in September,
1987, and accordingly recommends payment of compensation at the
rate of half the annual loss to the claimants.
~
Signed on behalf of the Labour Court.
Evelyn Owens
___________________
17th December,___1987
P. F. / M. F. Deputy Chairman.