Labour Court Database __________________________________________________________________________________ File Number: CD87931 Case Number: LCR11679 Section / Act: S67 Parties: NORTHERN BANK FINANCE CORPORATION - and - IRISH BANK OFFICIALS' ASSOCIATION |
Claim on behalf of three resident representatives for compensatory payment.
Recommendation:
5. Having considered the submissions made by the parties, the
Court recommends that standard payments of #1,275 plus #300 be
paid to all resident representatives involved in this case in
final settlement of the Union's claim.
Division: Mr O'Connell Mr Heffernan Mr Walsh
Text of Document__________________________________________________________________
CD87931 RECOMMENDATION NO. LCR11679
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: NORTHERN BANK FINANCE CORPORATION
and
IRISH BANK OFFICIALS' ASSOCIATION
SUBJECT:
1. Claim on behalf of three resident representatives for
compensatory payment.
BACKGROUND:
2. In early, 1987 the staff of the Bank's Asset Finance Section
became members of the Irish Bank Officials' Association. The
Association was formally recognised by the Bank on 20th March,
1987 and it raised, amongst other matters, the question of
compensation to resident representatives who work from their own
homes on the Bank's behalf. Negotiations were arranged but were
deferred as a result of the reorganisation of the branch structure
resulting in the closure of branches in Galway and Limerick and
the servicing of these areas by three new resident representatives
in addition to the existing three. Discussions took place from
May to July concerning the reorganisation. The Union sought an
ongoing allowance to all resident representatives of #3,500 per
annum, while the Company offered a once off payment of #1275 gross
plus #300 for redecoration to each of the three new resident
representatives and a once off payment of #850 to the three
original resident representatives. This offer was presented as
part of a package which also related to other matters. The
employees accepted the other items of the package but not the
offer in relation to resident representatives. It was agreed to
co-operate with the reorganisation and to refer the case of the
resident representatives to the conciliation service of the Labour
Court. The matter was referred to conciliation on 24th August,
1987 and a conciliation conference was held on 28th September,
1987. In the meantime one of the new resident representatives
left the Company. The Company offered to aggregate the sums
already on offer and divide this amongst the remaining five. The
minimum which was acceptable to the Union was payment of #1,275
plus #300 to each of the five. No agreement was reached and the
matter was referred to a full hearing of the Labour Court.
Subsequently, another one of the three new representatives left
the Company leaving only one of the three who had been offered
#1,275 plus #300. Secondly, one of the original representatives
withdrew his claim because he became manager of a new branch in
Letterkenny. Thus, only three resident representatives remain,
two of the original three and one of the new three appointed in
1987. The Court hearing took place on 28th January, 1988.
ASSOCIATION'S ARGUMENTS:
3. 1. Following the closure of the Dundalk branch in April,
1985, a representative attached to that branch was requested
to work from his home and report to the Dublin branch. This
entailed considerable inconvenience for him. He was advised
that if this was successful the Company would consider paying
him an allowance. In December, 1985, a representative at the
Galway branch was asked to move from Galway to live in
Mullingar and report to Dublin. On taking up this position he
was advised that the Company were examining ways of
compensating resident representatives for the use of their
homes as offices and that he would receive some form of
payment. In January, 1986 the Dublin Branch Manager was
transferred to Donegal as Area Manager. He was also asked to
work from his home and was advised that a compensatory payment
would be paid to him. All three had fax machines installed in
their houses in addition to the other inconveniences. Between
January, 1986 and February, 1987 a number of meetings took
place between these three individuals and the Company
regarding compensatory payments at which guarantees were
given. None of these guarantees were met. The Association
believes that the Company has an obligation to honour these
commitments. (The third individual has now withdrawn his
claim on transfer to Manager, Letterkenny).
2. The Company has offered #1,275 plus #300 to the new
resident representatives (of whom only one remains with the
Company). This payment, at least, should apply to the
individuals who were given commitments in the past concerning
the payment of compensation.
3. A representative operating from his own home incurs
considerable inconvenience. At least one room of his house
must be used for business purposes. There is an encroachment
on the privacy of the home, in particular there may be
customers calling to his house at any time. Family members
may also be inconvenienced.
4. The Company has made considerable savings in the operation
of resident representatives. It has closed branches in
Dundalk, Limerick and Galway and ensured that these areas will
continue to be serviced by resident representative from their
homes in Limerick, Mullingar and Monaghan. The employees have
co-operated with the Company and shown an attitude of
reasonableness with regard to their claim. The departure of
three representatives has been a significant gain to the
Company. The Association believes that the Company should now
re-deploy the monies saved and realistically compensate the
remaining three individuals.
COMPANY'S ARGUMENTS
4. 1. The Company in 1985, initiated a rationalisation programme
to cut costs, increase market competitiveness, and give an
efficient service to its new customer base. It rejected the
claim made on behalf of the resident representatives on the
basis that there was no inherent change in the job and no
financial loss would be incurred. However, a once-off lump
sum was offered, in an effort to resolve the difficulty.
2. The nature of any sales representative's job involves
travelling whether it be country-wide or designated areas of
the country. The Bank already provides company cars and
petrol expenses as part of the remuneration package. The
Company has assured its employees that it will meet the
installation and business costs arising from telephone
answering machines, fax machines and car phones, if considered
necessary. A pay agreement has recently been reached for 4%
over 12 months, and this together with an incremental
increase, must be considered very favourable by general
standards, particularly in the light of an inflation rate of
under 3%.
3. An annual allowance for a section of sales representatives
will quickly lead to a parity claim from the other
representatives, which in turn will push costs to an
unacceptable level.
4. Management considers that the real problem arose over the
distribution of the monies available. The Association's
position in this regard is unreasonable since it is seeking to
apply a high level of compensation, established by its
distribution for some individuals, to all concerned.
Management is prepared to offer #850 each to those involved in
the 1985 changes and #1,275 to the other individual or #1,000
to all three.
RECOMMENDATION:
5. Having considered the submissions made by the parties, the
Court recommends that standard payments of #1,275 plus #300 be
paid to all resident representatives involved in this case in
final settlement of the Union's claim.
~
Signed on behalf of the Labour Court
John O'Connell
_________________________
15th February, 1988. Deputy Chairman
A.K./J.C.