Labour Court Database __________________________________________________________________________________ File Number: CD87660 Case Number: LCR11436 Section / Act: S67 Parties: CORK CORPORATION - and - ITGWU |
Claim, for compensation for loss of overtime earnings, on behalf of 4 workers employed at the sewage treatment plant at Dennehy's Cross.
Recommendation:
5. The Court is conscious of the financial circumstances of the
Corporation but notes that the claimants loss in this case does
not derive directly from them. The loss results from the
introduction of a new system which will be to the immediate and
long-term benefit of the Corporation and the Public. The Court
also notes that the overtime was worked on a regular basis as an
integral and essential part of the working week required to
operate the old system.
In all the circumstances the Court recommends concession of the
claim.
Division: Mr O'Connell Mr Heffernan Mr Walsh
Text of Document__________________________________________________________________
CD87660 THE LABOUR COURT LCR11436
CC871162 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11436
Parties: CORK CORPORATION
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim, for compensation for loss of overtime earnings, on
behalf of 4 workers employed at the sewage treatment plant at
Dennehy's Cross.
Background:
2. The Corporation maintained a sewage treatment plant at
Dennehy's Cross for many years up to recently. This plant ceased
operations as a result of the erection of a new interceptor sewer
which is part of the Cork main drainage scheme. During the time
the workers concerned were employed at the plant they worked
overtime on Saturday mornings. Three worked for 4 hours every
Saturday and the fourth worked for 4 hours every second Saturday.
This overtime has now ceased as the plant is no longer in use.
The workers have been retained in employment and transferred to
other drainage work. The Union claimed compensation for loss of
overtime earnings. This claim was rejected by the Corporation and
the matter was referred to the conciliation service of the Labour
Court on 17th July, 1987. A conciliation conference was held on
11th August, 1987. As no agreement was possible both parties
agreed to a referral to the Labour Court for investigation and
recommendation. A Court hearing was held in Cork on 16th
September, 1987.
Union's arguments:
3. (a) The overtime was a feature of the job for many years
since the inception of the plant in 1957. It was one
of the conditions of the job to work overtime and it
was essential to the running of the plant.
(b) The levels of overtime were regular and recurring.
Consequently the workers life styles were based on
these levels of earnings. Since the overtime ceased
their standard of living has been seriously eroded with
resultant domestic problems.
(c) The Corporation have made substantial savings in labour
costs plus plant maintenance, supervision and
administration costs. Some of these benefits should be
passed on to the workers.
(d) The Corporation has paid compensation for loss of
overtime earnings before on foot of Labour Court and
Rights Commissioners' recommendations. The Union are
seeking compensation of 39 times the weekly loss as a
minimum, which is considerably less than the norm of 1.50
times the annual loss, in recognition of the financial
constraints on the Corporation. The claim satisfies
all the conditions for payment of compensation in
respect of loss of overtime earnings.
Corporation's arguments:
4. (i) The claim has been rejected because the work on the
plant is no longer necessary and has been shutdown.
The workers have been retained in employment despite
this shutdown and no real savings accrue to the
Corporation.
(ii) The Corporation is unable to afford payment of
compensation at this time due to its current financial
position which continues to be heavily in debt.
(iii) Other more severe and extensive cost cutting measures
have and are being undertaken by the Corporation
involving job losses as part of its cost cutting
exercises to meet its budgetary targets.
(iv) The Corporation is precluded under the terms of
Government policy from paying or conceding claims of
this nature.
RECOMMENDATION:
5. The Court is conscious of the financial circumstances of the
Corporation but notes that the claimants loss in this case does
not derive directly from them. The loss results from the
introduction of a new system which will be to the immediate and
long-term benefit of the Corporation and the Public. The Court
also notes that the overtime was worked on a regular basis as an
integral and essential part of the working week required to
operate the old system.
In all the circumstances the Court recommends concession of the
claim.
~
Signed on behalf of the Labour Court
John O'Connell
________________________
Deputy Chairman.
28th September, 1987.
M.D./J.C.