Labour Court Database __________________________________________________________________________________ File Number: CD87284 Case Number: LCR11283 Section / Act: S67 Parties: DEPT OF ENERGY - and - FWUI;ITGWU |
Claim, by the Unions on behalf of approximately 2,000 workers, for an increase in allowances in line with pay adjustments since 1983.
Recommendation:
7. The Court notes that the reviews of allowances at intervals of
two years as recommended in Labour Court Recommendation No. 7961
did not in fact take place. The Court therefore recommends that a
review now take place, regard being had to all the circumstances
applying at this time.
Division: Mr Fitzgerald Mr McHenry Mr Walsh
Text of Document__________________________________________________________________
CD87284 THE LABOUR COURT LCR11283
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11283
PARTIES: DEPARTMENT OF ENERGY
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
FEDERATED WORKERS' UNION OF IRELAND
Subject:
1. Claim, by the Unions on behalf of approximately 2,000 workers,
for an increase in allowances in line with pay adjustments since
1983.
Background:
2. In December, 1981, the Unions served a number of claims on the
Department of Fisheries and Forestry (now incorporated into the
Department of Energy). In the course of negotiations between the
parties on the matters, some of the issues were resolved but no
agreement could be reached on the issue of allowances. This
matter was subsequently referred to the Labour Court for
investigation and recommendation. On 14th April, 1983, the Court
issued the following recommendation (LCR No. 7961) in relation to
the increase in allowances:-
"The Court recommends that the parties agree to a review of
the levels of allowances at intervals of two years".
3. A letter from the Court to the parties set the first review
date as 3rd February, 1983. In 1985 when allowances again came up
for review the parties could not agree on a settlement and
referred the matter to the conciliation service of the Labour
Court. At a conciliation conference on 2nd July, 1985, the Union
suggested that a joint job evaluation committee be established in
order to effect the increases. The Department maintained that due
to the Public Service Pay Agreement all further increases were
precluded until October, 1986. The Unions withdrew and reserved
their position.
4. The Unions referring to the Court's recommendation now claim
that under the present Public Service Pay Agreement the claim can
be processed. The Department acknowledges the terms of the
recommendation but contends that as a result of the recent budget
statement, concessions cannot be made. It also pointed out that
the increases sought would adversely affect their cost
effectiveness vis-a-vis contract workers and if conceded would
lead to job losses. As no agreement could be reached locally, the
matter was again referred to the conciliation service of the
Labour Court. No basis for settlement could be reached at a
conciliation conference held on 8th April, 1987, and the matter
was referred on the same day to the Labour Court for investigation
and recommendation. A Court hearing took place on 11th June,
1987.
Union's arguments:
5. (i) The Department has made reference to the Public
Service Pay Agreement 1983 and to financial
circumstances, despite the fact that the Department of
the Public Service, at a monitoring committee meeting
of the Employer/Labour Conference on 11th March, 1983,
accepted that the claims on allowances were minor
claims and made a revised offer on foot of that
position.
(ii) There has been a major slippage in the value of the
allowances relative to basic pay since 1983. Basic
pay has increased by 43% at the minimum and 40% at the
maximum over the same period (details provided to the
Court). The Department has failed to carry out two
reviews of allowances, in line with the Court's
recommendation, during the last four years. For this
reason the Unions believe that the allowances should
be increased retrospectively in line with basic pay.
Department's arguments:
6. (a) At both conciliation conferences i.e. 2nd July, 1985,
and 8th April, 1987, the Department referred to its
funding situation and indicated that employment was a
greater priority than increased allowances. The
Unions were informed that the Government had decided
that no further increases could be paid which had not
previously been agreed to and provided for.
(b) In his speech to the Dail on the Budget, the Minister
for Finance stated:
"as from today no public service employers are to pay
any special increases other than those already
approved and for which provision is being made in
the revised allocations for non-capital supply
services".
For this reason the Department is not in a position to
concede this claim.
RECOMMENDATION:
7. The Court notes that the reviews of allowances at intervals of
two years as recommended in Labour Court Recommendation No. 7961
did not in fact take place. The Court therefore recommends that a
review now take place, regard being had to all the circumstances
applying at this time.
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Signed on behalf of the Labour Court
2nd July, 1987 Nicholas Fitzgerald
B.O'N./P.W. Deputy Chairman