Labour Court Database __________________________________________________________________________________ File Number: CD88443 Case Number: LCR11982 Section / Act: S67 Parties: UDARAS NA GAELTACHTA - and - MANUFACTURING SCIENCE AND FINANCE |
Claim, on behalf of workers who have been employed by the Udaras for 15 years and who have been 5 years at the maximum point of the pay scale for their grades that they should automatically advance to the pay scale of the next highest grade.
Recommendation:
8. The Court is satisfied that the terms of paragraph 5.3. of the
IPC report, dated April, 1978, should be applied to the members of
the staff of Gaeltarra Eireann, who were transferred to Udaras na
Gaeltachta under the terms of the Act of 1979.
The Court accordingly recommends concessions of the Union's claim.
Division: Ms Owens Mr Heffernan Mr O'Murchu
Text of Document__________________________________________________________________
CD88443 RECOMMENDATION NO. LCR11982
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: UDARAS NA GAELTACHTA
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
AND
MANUFACTURING SCIENCE AND FINANCE
SUBJECT:
1. Claim, on behalf of workers who have been employed by the
Udaras for 15 years and who have been 5 years at the maximum point
of the pay scale for their grades that they should automatically
advance to the pay scale of the next highest grade.
BACKGROUND:
2. Udaras na Gaeltachta, which was formerly known as Gaeltarra
Eireann, was established by the Udaras na Gaeltacha Act, 1979. It
is a State owned non commercial Company responsible for the
development of Gaeltacht areas. There are 102 people employed by
the Company at its headquarters in Furbo, Co. Galway and
throughout the other Gaeltacht areas. M.S.F. represents the
majority of unionised staff.
3. Labour Court Recommendation No. 4286 (May, 1977) recommended
that Gaeltarra Eireann should employ independent consultants to
examine and report on certain staff structures in the Company.
The Irish Productivity Centre (I.P.C.) carried out this
examination and issued a report in April, 1978. On the matter of
long service salary reviews the I.P.C. recommended that where a
person has been at the top of his/her salary scale for five years
and has completed a minimum of fifteen years unbroken service
he/she could proceed to the next salary scale and progress to the
maximum of that scale by means of annual increments. (The
relevant extract of the report is attached at Appendix 1). The
report was the subject of subsequent discussions between the
Udaras and the Union and the Udaras wrote to the Union on 27th
January, 1981, stating, amongst other things:
* " 4. Long Service Review
This is automatic and subject to all the conditions
laid down by the I.P.C. on pages 16/17 of its report
dated April, 1978 ". *
* - * Translation from Irish.
4. In April, 1987 one worker met the required conditions for
automatic advancement to the next higher grade. The Udaras
contacted Roinn na Gaeltachta seeking permission to implement the
terms of the IPC report. The Udaras is under instruction to refer
any issue relating to remuneration, regrading or conditions of
employment to the Department. By letter dated 13th May, 1987 the
Department refused permission to implement the terms of the IPC
report in respect of Long Service Reviews. Further discussions
took place between the Udaras and the Union. On 3rd September,
1987 the Udaras again wrote to the Department setting out the full
position. The Department replied by letter dated 8th September,
1987 stating that it had nothing further to add to its earlier
correspondence.
5. The Union referred the matter to the conciliation service of
the Labour Court and it was the subject of a conciliation
conference held on 20th April, 1988. No agreement being reached,
the matter was referred to a hearing of the Labour Court. The
hearing took place on 12th July, 1988, in Galway.
UNION'S ARGUMENTS:
6. 1. The IPC report recommended, amongst other things, that
workers who have been employed by the Udaras for 15 years and
who have been 5 years at the maximum point of the pay scale
for their grade should automatically advance to the pay scale
of the next highest grade. In its letter dated 27th January,
1981 the Udaras confirmed that this recommendation would be
implemented. However, other aspects of the IPC recommendation
were implemented but this aspect was not. The Union is
seeking to have the agreement reached between the parties
honoured by the Udaras.
2. The Udaras accepted the principle established by the IPC
report and cannot now say that it will not accept a departure
from the existing link with the Civil Service.
3. The Union does not accept that concession of the claim
would be contrary to the needs of the economy as the Udaras
contends.
4. The Union does not accept that concession of the claim
would have repercussive effects in causing "knock-on" claims
as this is a unique situation.
5. The cost of implementing the terms of the IPC report would
not be prohibitive.
COMPANY'S ARGUMENTS:
7. 1. Under the terms of Acht um Udaras na Gaeltachta, 1979, the
Udaras is bound to comply with any directive from the Minister
for the Gaeltacht, with regard to remuneration, allowances, or
terms or conditions of employment. The organisation must seek
permission for the implementation of grade progressions,
regradings or any changes in working conditions. In
compliance with this directive, it contacted the Department
with regard to implementation of IPC report and it has been
instructed not to proceed with implementation.
2. The rates of pay of grades in the Udaras are set at levels
directly equivalent to Civil Service grades. The rates of pay
have been determined according to the responsibilities of each
of the posts involved. The Udaras cannot accept what would be
a major departure from this principle which has always been
the basis upon which rates of remuneration are paid. The
Udaras is not aware of any comparable system of grade
progression in the Public Service. Furthermore, conditions of
employment in the Udaras are, in general terms, related to
those operating in the other development agencies (principally
IDA and SFADCO) where no such system of automatic progression
applies.
3. Given the constraints operating in the Public Service
generally and the particular constraints imposed on the
Udaras, the Department is clearly of the view that the
progression in question could not be afforded. The cost of
implementation of the long service review would be very
considerable and could not be met by the Udaras. In 1983/84,
the Department of the Public Service carried out a review of
the organisation of the Udaras which concluded, in general
terms, that there was an imbalance in the Udaras' personnel
structure with the proportion of senior to junior staff being
out of line. This problem would be significantly exacerbated
if the IPC report on long service review was to be
implemented. The Udaras was forced to offer the terms of the
voluntary early retirement scheme for the Public Service to
its staff.
4. To concede the claim and thereby open the way for similar
claims and costs throughout the Public Service would be
contrary to the urgent and widely recognised needs of the
economy.
5. The Udaras accepts that under the terms of the letters of
clarification of 1981, no problems with the implementation of
long service review had been envisaged. At this stage,
however, the situation is completely different and it does not
consider that now would be appropriate to proceed as was
originally intended.