Labour Court Database __________________________________________________________________________________ File Number: CD8873 Case Number: LCR11712 Section / Act: S67 Parties: LAOIS COUNTY COUNCIL - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
Claim, on behalf of seven workers in the housing maintenance section, against proposed short-time working.
Recommendation:
5. The Court in arriving at its decision in this case took
account of
(a) the provision of the "Programme for National Recovery",
(b) Department of the Environment Circular Letter LA(P)
20/87,
(c) the Code of Practice on Security of Employment, 1985,
and
(d) the financial position of Laois Co. Council.
It is clear in the Programme for National Recovery, that the
parties who drew up and signed that agreement, considered that
redundancies in the Public Service were to be achieved on a
voluntary basis. Circular letter 20/87, headed "Voluntary
Redundancy/Early Retirement terms for Local Authority Staff,"
submitted by the Union side states that having regard to the
voluntary nature of the scheme that the Minister considers that
the implementation of the voluntary redundancy/early retirement
terms in local authorities must as a priority assist in bringing
about a situation whereby measures such as enforced lay off and
short time working are no longer necessary. The circular referred
to in (c) above further asks Managers to co-operate with the terms
of the Code of Practice which states "it is recommended that
employees who have achieved permanent status should not be subject
to lay offs, short time working or redundancy." (Clause 3.2).
The Court is of the view that the proposals from Laois Co. Council
to put certain employees on short time working/lay off as outlined
in the submission to the Court and which could be construed as
"constructive" redundancy through short time working, may be in
breach of the terms of the Plan for National Recovery (Section 2
Paragraph 11) and Circular LA(P) 20/87.
In view of the above and notwithstanding the financial
difficulties of Laois Co. Council, the Court recommends concession
of the Union claim in relation to the introduction of short time
working/lay offs.
Division: Ms Owens Mr Shiel Mr O'Murchu
Text of Document__________________________________________________________________
CD8873 RECOMMENDATION NO. LCR11712
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: LAOIS COUNTY COUNCIL
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim, on behalf of seven workers in the housing maintenance
section, against proposed short-time working.
BACKGROUND:
2. Since June, 1987, approximately 140 general operatives have
been working on a week on/week off basis. The Council, by letter
dated the 21st January, 1988, informed the Union that it intended
placing seven craftsmen on short-time (one week on, two weeks off)
with effect from the 4th February, 1988. It justified this
proposed action as lack of funding. The Union opposed this action
and following the failure of local level talks to resolve the
dispute, it was referred to the conciliation service of the Labour
Court on the 27th January. A conciliation conference held on the
same day was unsuccessful in settling the dispute and it was
referred to the Labour Court for investigation and recommendation.
A Court hearing was held on the 8th February, 1988. The Council
has agreed to defer its proposals until the Court issues a
recommendation.
UNION'S ARGUMENTS:
3. 1. On the 23rd June, 1987, the unions representing workers
in Laois County Council were advised that a total of 2494
man-week lay-offs were required because of financial
shortfalls. The workers fully co-operated with the Council on
the implementation of a week on week off work schedule. This
short-time working should have finished in December, 1987, but
has not (details supplied to the Court). There are currently
some 140 general operatives still on short-time. In addition,
the Union has fully co-operated with the Council in its
attempts to relieve the situation via voluntary redundancies
(having sought 70 outdoor redundancies, approximately forty
applications have been received).
3. 2. The Union contends that the Council's action in
continuing and increasing short-time working is totally at
variance with the commitments given by An Taoiseach and the
directives of the Department of the Environment (details
supplied to the Court). More importantly it is a breach of
the Programme for National Recovery. Workers accepted the
agreement on the basis that its terms precluded compulsory
redundancies and forced lay-offs in the local authorities.
The Redundancy Payments Acts 1967 - 1979, adequately describe
and define redundancy situations. Clause 12(2)(1) outlines
the conditions under which a short-time lay-off may legally be
deemed to develop into a redundancy situation, e.g. where a
worker "has been laid-off or kept on short-time for a series
of six or more weeks (of which not more than three were
consecutive) within a period of thirteen weeks". Obviously,
this means that a de jure and de facto redundancy situation
exists at Laois County Council, which is in breach of the
National Recovery programme.
COUNCIL'S ARGUMENTS:
4. 1. Since 1982 the Council has had to cope with a cumulative
shortfall of #10.19m. from rate support grants and was not in
a position to make up this from its own resources. The
consequence is the drop in the level of service now being
provided, compared to that which obtained pre 1982. Examples
of areas where significant cut-backs have been made during the
years since 1982 are: county road maintenance, housing
maintenance, surface-dressing on roads, maintenance of water &
sewerage schemes, domestic refuse collection, purchase of
library books, postponement of capital works, elimination of
all but essential overtime, limitation of travelling expenses,
reduction in staff training and attendance at courses.
2. To maintain a similar level of service as provided in
1987 would cost #16.64m., an increase of #1.2m., or 75%, of
last year's income from local sources. The financing of any
increase has been nullified by a reduction of #573,700, 14% on
the 1987 Rate Support Grants of #4,109,700 paid by Central
Government. The elimination of the shortfall would require a
55% increase in the county rate, or an increase of 107% in the
service charges, or a combination of both, clearly burdens
which could not be imposed on the commercial rate payers.
3. When considering the Estimates for 1988, the Council
agreed that it was not possible to impose increases of such
magnitude and further decreases in the level of services had
of necessity to be made. Outdoor staff have been on
short-time working since June 1987. This affected
approximately 140 - 160 workers. This will continue for these
workers for the whole of 1988 and many employees not on
short-time in 1987 are likely to be placed in this category.
The Council is examining every area of employment - servants
and officers - with a view to identifying those from whom
applications for the Government Redundancy Scheme will be
considered.
4. 4. The Government's voluntary redundancy/early retirement
scheme has been offered to all staff members. In order that
full-time employment could be maintained for the P.R.S.I.
paying staff, after redundancies, it is calculated that
approximately 100 would have to avail of the Scheme. It is
calculated that a maximum of 70 could only be allowed avail of
it, after which serious repercussions would arise. Seventy
redundancies would represent a 28% reduction on the P.R.S.I.
paying complement employed by the Council at 1st January,
1987. In regard to the non full-paying P.R.S.I. staff, it is
calculated that a reduction of not more than 25, or 20%, of
the staff complement at 1st January, 1987, could be tolerated.
In this category severe restraints have already been
implemented by availing of career breaks (6), the non-filling
of permanent vacancies (5) and the formation of the Bye-Pass
Design Team (6) from staff.
5. If the financial resources available to the Council at
the present time is to be the criterion for redundancy, the
Council would be understaffed to the extent that it would be
unable to carry out its statutory obligations. The effect of
this will be that some short-time working will be inevitable
in Laois County Council in 1988, even if the redundancy
targets set are achieved.
6. The Programme for National Recovery states that the
Government is committed to achieving a reduction in the number
of Public Service employees on a voluntary basis. The
position with regard to short-time is not dealt with in the
document. It is Management's view that if short-time were
precluded then there would be a specific statement to this
effect. In any event short-time does not specifically involve
any permanent reduction in numbers.
7. The introduction of short-time working for the seven
members of the outdoor staff will not impose severe financial
hardship since they will be entitled to full P.R.S.I.
benefits, as they were working full-time in 1987
RECOMMENDATION:
5. The Court in arriving at its decision in this case took
account of
(a) the provision of the "Programme for National Recovery",
(b) Department of the Environment Circular Letter LA(P)
20/87,
(c) the Code of Practice on Security of Employment, 1985,
and
(d) the financial position of Laois Co. Council.
It is clear in the Programme for National Recovery, that the
parties who drew up and signed that agreement, considered that
redundancies in the Public Service were to be achieved on a
voluntary basis. Circular letter 20/87, headed "Voluntary
Redundancy/Early Retirement terms for Local Authority Staff,"
submitted by the Union side states that having regard to the
voluntary nature of the scheme that the Minister considers that
the implementation of the voluntary redundancy/early retirement
terms in local authorities must as a priority assist in bringing
about a situation whereby measures such as enforced lay off and
short time working are no longer necessary. The circular referred
to in (c) above further asks Managers to co-operate with the terms
of the Code of Practice which states "it is recommended that
employees who have achieved permanent status should not be subject
to lay offs, short time working or redundancy." (Clause 3.2).
The Court is of the view that the proposals from Laois Co. Council
to put certain employees on short time working/lay off as outlined
in the submission to the Court and which could be construed as
"constructive" redundancy through short time working, may be in
breach of the terms of the Plan for National Recovery (Section 2
Paragraph 11) and Circular LA(P) 20/87.
In view of the above and notwithstanding the financial
difficulties of Laois Co. Council, the Court recommends concession
of the Union claim in relation to the introduction of short time
working/lay offs.
~
Signed on behalf of the Labour Court
Evelyn Owens
29th February, 1988 ----------------
D.H./U.S. Deputy Chairman