Labour Court Database __________________________________________________________________________________ File Number: CD87955 Case Number: LCR11665 Section / Act: S67 Parties: SECURICOR IRELAND LIMITED - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
The proposed introduction of a "composite rate" of pay for C.I.T. workers.
Recommendation:
5. The Court wishes to point out that under the Company's
proposal C.I.T. personnel who work less than 55 hours per week
will benefit financially and that there will be more hours
available for those C.I.T. staff who wish to avail of them. In
all the circumstances, the Court recommends that a composite rate
of #4.15 be accepted by both sides.
If this proposal is not accepted there should not be any
impediment to the reduction in overtime working through the
recruitment of additional staff.
Division: CHAIRMAN Mr McHenry Mr Walsh
Text of Document__________________________________________________________________
CD87955 RECOMMENDATION NO. LCR11665
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: SECURICOR IRELAND LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. The proposed introduction of a "composite rate" of pay for
C.I.T. workers.
BACKGROUND:
2. Labour Court Recommendation No. 10812 dated 12th November,
1986, relating to the rationalisation of the Company's pay
structure, recommended as follows:
"The Court ... is satisfied that urgent cost saving measures
must be introduced to safeguard employment in the Company in
the immediate future........ The Court considers that it is
essential that the cost of overtime working be reduced. This
could be achieved by reducing the incidence of overtime
working and, as the Company has proposed, by reducing the
premium which such working attracts. The Court having
considered the situation recommends that, rather than reduce
the overtime premium from one half to one quarter, the
Company and the Union should actively co-operate in the
reduction of unnecessary overtime working immediately".
There are sixty three workers employed in the Company's
cash-in-transit (C.I.T.) section. Average weekly working hours
are 60. The present basic rate is #3.63 per hour, with an
overtime rate of #6.12 per hour payable after 45 hours.
Throughout 1987 the Company reduced overtime costs in a number of
areas by reducing hours worked and increasing efficiency. A
number of meetings took place to discuss the reduction of
operating costs in the C.I.T. section. The Company proposed the
introduction of a composite rate of pay for all hours worked in
replacement of the basic rate plus overtime payment. The final
offer on such a rate was #4.11 per hour for all hours worked. The
Union was in favour of compensation for loss of overtime but put
forward a figure of #5 per hour if a composite rate were to be
introduced. No agreement was reached at local level and, on 17th
November, 1987, the matter was referred to the conciliation
service of the Labour Court. A conciliation conference was held
on 7th December, 1987 but, as no agreement was reached, the matter
was referred to a full hearing of the Labour Court. The hearing
took place on 7th January, 1988.
UNION'S ARGUMENTS:
3. 1. The conditions of the workers concerned have not improved
since December, 1984 when a commitment was given to examine
the situation. In the meantime they have lost out on one wage
round and have received no increase in wages during a period
when all other workers employed by Security Companies did.
The Union therefore opposes any reduction in earnings.
2. The workers are carrying out an onerous and dangerous job
in transporting large amounts of cash in vans which are often
uncomfortable due to the security precaution of windows which
cannot be opened etc. Wages and conditions compare
unfavourably with those of security guards in the Associated
Banks. But for the opportunity of overtime earnings many
workers would not undertake this difficult and dangerous job.
3. The Company maintains that the workers are liable for
seven day cover. None of the present staff has ever been
rostered to work on a Sunday. Saturday afternoon work has
always been carried out on a voluntary basis. Since the
C.I.T. section recommenced operations ten years ago the
workers have worked a five day week with Saturday as a rest
day. An additional payment of #6 was available for Saturday
work.
4. Labour Court Recommendation No. 10812 does not give the
Company the right to abolish overtime rates. The document
refers to "unnecessary overtime working".
5. A reduction in staff earnings is normally associated with
a decline in business. At the present time the C.I.T. section
is working to capacity with no indication of a reduction in
workload.
6. The Union seeks compensation for loss of earnings at a
rate of not less than two and a half times the annual loss.
COMPANY'S ARGUMENTS:
4. 1. In 1986 the Labour Court recognised the necessity for the
Company's overtime costs to be reduced. The Court differed
with the Company only on the basis on which these costs should
be reduced.
2. The proposal to introduce a "composite rate" provides the
most suitable remuneration method for both the Company and its
employees. In using a composite rate the cost to the Company
remains constant, regardless of the number of hours worked by
individuals. This facilitates flexibility in rostering where
certain workers may wish to work only a basic week, while
others may wish to work considerable overtime. The Company's
proposal will ensure that there is no cost penalty to the
Company in facilitating the rostering requests of workers.
3. Under the Company's proposal to introduce a composite
rate, C.I.T. workers working up to 55 hours per week will earn
more money than under the present basic pay and overtime
structure. Thereafter, the existing system would produce
higher earnings. However, the proposed system of payment is
likely to generate more opportunity for additional hours to be
worked giving the opportunity to increase gross earnings. At
present, the annual average hours worked per week by C.I.T.
crew members is 60.
4. At present, the Company rosters staff from other sections
of the security division into the C.I.T. section when the
workload demands it. This work is carried out within the
basic working hours of the staff from other divisions, and
consequently, is at a lower cost to the Company. The
introduction of a composite rate will provide for a fixed
hourly rate of pay for C.I.T. work, thus making it only
necessary to roster staff from other sections of the security
division in the event that C.I.T. staff cannot cover the hours
required.
5. The Company is not prepared to make a payment for loss of
earnings to staff in the C.I.T. section on the introduction of
the composite rate. To do so would increase the cost of the
Company's proposal to an unacceptable level and would be out
of line with the intention of Labour Court Recommendation No.
10812. The Company therefore seeks acceptance of the offer of
#4.11 per hour without compensation for loss of earnings
RECOMMENDATION:
5. The Court wishes to point out that under the Company's
proposal C.I.T. personnel who work less than 55 hours per week
will benefit financially and that there will be more hours
available for those C.I.T. staff who wish to avail of them. In
all the circumstances, the Court recommends that a composite rate
of #4.15 be accepted by both sides.
If this proposal is not accepted there should not be any
impediment to the reduction in overtime working through the
recruitment of additional staff.
~
Signed on behalf of the Labour Court
John M. Horgan
_______________________
28th January, 1988.
A.K./J.C. Chairman