Labour Court Database __________________________________________________________________________________ File Number: CD87336 Case Number: LCR11296 Section / Act: S67 Parties: DEPT OF DEFENCE - and - ICTU |
Claim for the payment of wages by cheque.
Recommendation:
5. The Court recommends that the Department revert to its offer
of 3rd June, 1986, with clause (v) thereof amended in the manner
suggested by the Trade Union Group and that the offer so amended
be accepted by the workers concerned.
Division: Mr O'Connell Mr Collins Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD87336 THE LABOUR COURT LCR11296
CC86435 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11296
Parties: DEPARTMENT OF DEFENCE
and
CONGRESS GROUP OF UNIONS
Subject:
1. Claim for the payment of wages by cheque.
Background:
2. The Department of Defence has sought to introduce payment by
cheque for civilian employees in all locations. The claim
concerns several hundred workers employed as craftsmen, general
workers, and foremen in Barracks and bases throughout the country.
Consultations took place with the Union at local level to discuss
such matters as time-off, change of pay-day etc, but no agreement
was reached. The matter was referred to the Labour Court on 3rd
March, 1986, and a conciliation conference took place on 13th
March, 1986, from which the following offer emerged:
(i) There would be no question of any civilian employee
having to pay a 50p surcharge.
(ii) Cashing facilities would be provided at Barrack or Unit
level to facilitate employees who did not hold bank
accounts or who did not have a facility for cashing
cheques.
(iii) One hour's time off would be granted to employees who
had a bank account or who did not wish to avail of the
cashing facilities.
(iv) The pay day would be changed from Friday to Thursday
and the day's pay would be recouped at a rate not
exceeding #1 per week.
The matter was referred to the Joint Industrial Council (JIC) for
state employees on 8th April, 1986, for further negotiations and
at that meeting the Union side proposed a number of amendments to
the offer.
The Department responded to the Unions by letter in May, 1986 and
at the J.I.C. meeting of 2nd September the Union side said that
the craft unions were withdrawing all co-operation due the
attitude of the Department in relation to the re-coupment of the
day's pay.
At the J.I.C. meeting of 14th October, the Union side proposed
that the day be recouped from holiday entitlements at the end of
the operative's service. Further discussions were held at J.I.C.
level, and at the meeting of 2nd December, the Employer side said
that they were prepared to waive the day until the end of service
provided the cash facility would be phased out within six months.
They confirmed this position in writing on 2nd February, 1987,
extending the phasing out of the cash facility to one year.
The Union side was not prepared to accept this position, and at
the meeting of the J.I.C. on 7th April, 1987, it was agreed that
the matter be referred to the Labour Court for investigation and
recommendation. A Court hearing took place in Dublin on 5th June,
1987.
Union's arguments:
3. (a) The following is the Unions summarising of the
situation regarding payment by cheque:
The Department of Defence sought to reach agreement to
introduce cashless pay. They had no agreement to do
this in respect of craftsmen. An agreement dated 1976
in respect of operatives was not acted upon, and was
therefore considered to be null and void.
The normal security considerations in cashless pay did
not apply in this case; indeed, the Department made it
clear that the need to change to cheques was a change
in administrative procedures.
(b) Negotiations were entered into, and the question of the
change in pay day to Thursday was associated with the
negotiations. In the end the method of the repayment
of this "lost day" became a sticking point in the
negotiations.
(c) The change in pay day was peripheral to the main issue.
The Union negotiators were concerned that a package
would be acceptable if certain guarantees could be
gained regarding the ongoing availability of cash at
Barrack or Unit level.
(d) In responding to a Union request for clarification on a
peripheral item in order to make a package more
acceptable, the Management side suggested the
withdrawal of that element of the proposed agreement,
which would make payment by cheque acceptable.
(e) The Department is not opposed in principle to the
recovery of the "lost day" arising from the change in
pay day from an employee's entitlements on leaving the
service.
(f) The Unions have attempted to bargain in good faith with
the Departmental representatives. They feel that the
compromise they have suggested is fair and reasonable,
and should be upheld by the Court. They therefore ask
the Court to recommend that Section (v) of the
Department's letter of 3rd June (details with Court) be
modified to read as follows:
"The pay day will be changed from Friday to Thursday
and the day's pay will be recouped from an
employee's entitlements on leaving the service."
Department's arguments:
4. (i) Operating a dual system poses great difficulties for
our already depleted wages section. Over 500 civil
servants, 13,000 army (officers and men) and about 400
civilian employees are paid by cheque. Greater
efficiency would result in the one system for all
employees.
(ii) The Department has an internal security problem in
relation to payment of wages by cash. Manpower in the
Army is becoming increasingly scarce - escorts for the
movement of large amounts of cash, border duties,
maintaining a peace-keeping force abroad and the recent
embargo on recruitment - all contribute to restrictions
on the availability of military personnel.
(iii) While recognising that the Payment of Wages Act, 1979,
and the 19th century Truck Acts which regulate pay
methods are still on the statute books, yet about 50%
of all Irish workers (including the vast majority of
public service employees), are paid by cheque and the
Labour Court has in the past recommended payment of
wages by cheque.
(iv) The Department's proposals are:-
(i) Cashing facilities will be provided at Barrack
or Unit level to facilitate employees who do not
hold bank accounts or who do not have a facility
for cashing cheques;
(ii) One hour's time off will be granted to employees
to go to the Bank or who do not avail of the
cashing facilities;
(iii) The pay day will be changed from Friday to
Thursday and the day's pay will be recouped at
the end of the employee's service on the
understanding that payment of wages by cash will
be phased out within one year of the
introduction of payment of wages by cheque.
The Department asks the Court to recommend acceptance
of the proposals as outlined in paragraph 10 to the
unions (details with Court).
RECOMMENDATION:
5. The Court recommends that the Department revert to its offer
of 3rd June, 1986, with clause (v) thereof amended in the manner
suggested by the Trade Union Group and that the offer so amended
be accepted by the workers concerned.
~
Signed on behalf of the Labour Court
John O'Connell
_________________________
Deputy Chairman
3rd July, 1987
P.F./J.C.