Labour Court Database __________________________________________________________________________________ File Number: CD87969 Case Number: LCR11717 Section / Act: S67 Parties: GEORGE BELL (SHIP MANAGEMENT) LIMITED - and - FEDERATED WORKERS' UNION OF IRELAND |
Interpretation of Labour Court Recommendation No. 10117 with regard to cooks' rate of pay.
Recommendation:
5. The Court, having regard to the conduct of negotiations,
considers that the Union's interpretation of the agreement is
reasonable and recommends accordingly.
Division: CHAIRMAN Mr Shiel Mr Walsh
Text of Document__________________________________________________________________
CD87969 RECOMMENDATION NO. LCR11717
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: GEORGE BELL (SHIP MANAGEMENT) LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
and
FEDERATED WORKERS' UNION OF IRELAND
SUBJECT:
1. Interpretation of Labour Court Recommendation No. 10117 with
regard to cooks' rate of pay.
BACKGROUND:
2. The Company employs 118 workers as seafarers on 8 ships used
for the transportation of cargo between Ireland and various
European ports. In 1985 the Company rationalised its fleet
operations. The matter of rationalisation was the subject of
Labour Court Recommendation No. 10117 dated 18th November, 1985.
The Court recommended that ship crew size be reduced from nine
workers to seven and, in relation to salary adjustment stated as
follows:
"(C) Salary Adjustment:
(1) The Court recommends that the following salary
adjustments be made to the salaries when the new
system *1 is introduced on each ship:-
Master #1,000.00
Chief Engineer 800.00
Mate 600.00
Second Mate 500.00
GP *2 500.00
(2) After six months experience of the operation of
the new system a further salary adjustment should
be made by increasing the salaries by amounts
related to the distribution of duties among the
remaining crew members based on a maximum overall
increase of #1,100.00 per crew i.e. the total
additional adjustments to all the salaries should
not exceed #1,100.00 per annum for each seven man
crew".
*1(of crewing)
*2(general purpose seamen).
Prior to rationalisation the salary of a cook was #13,018 per
annum while that of a GP was #12,180. The position of cook was
discontinued as a result of the rationalisation and it was agreed
that those cooks who did not wish to avail of the redundancy
package would be kept on as GPs. Their higher salary was to be
retained on a red-circled basis. In implementing Labour Court
Recommendation No. 10117 the Company included these individuals
(seven in number) when commencing payment of the #500 salary
adjustment to GPs and in making the #1,100 payment per crew.
However, a few months later, these payments were discontinued in
the case of the ex-cooks, the Company stating that the payments
had been applied to them in error. The Union was not prepared to
accept this, stating that it was understood that the payments
would apply to the ex-cooks. The matter was referred, on 15th
April and 11th August, 1987 to the conciliation service of the
Labour Court. A conciliation conference took place on 15th
December, 1987, the earliest suitable date. No agreement was
reached, however, and the matter was referred to a full hearing of
the Court. The hearing took place on 5th February, 1988.
UNION'S ARGUMENTS:
3. 1. The Union was and is quite clear concerning the
arrangements entered into with the Company and the proposals
voted on by the workers with regard to cooks who chose to
remain on and work within the new reduced seven man crewing
system as GPs. The arrangements were that these individuals
were to be red circled and were to suffer no loss of salary
either actual or relative. They were to have their salaries
upwardly adjusted in accordance with Sections C1 and C2 of
Labour Court Recommendation 10117 and also to have their
salaries increased in accordance with payrounds.
2. Only individual cooks who remained in employment at that
time were to be red circled. Once those named individuals
left the employment of the Company their individual rate of
pay would cease to operate.
3. The Union's understanding of the position arises from the
discussions which took place at a Labour Court conciliation
conference held on 14th and 15th November, 1985.
COMPANY'S ARGUMENTS:
4. 1. The Company applied the payments under Sections C1 and C2
of Labour Court Recommendation No. 10117 to the ex-cooks in
error. The payments were discontinued as soon as the error
was realised by senior management. The intention of the
parties was to "red circle" the rate of these individuals.
This done, the intention was to apply cost of living increases
only until the GP rate "caught up" with the ex-cooks rate.
2. To increase the ex-cooks rate other than under this
arrangement would contradict the original logic of "red
circling" which was to ensure that ex-cooks did not suffer a
loss.
3. There continues to be a pressing need for cost saving in
the Company. The higher ex-cooks rates constitute a cost
which the Company is prepared to pay as long as these
individuals are in employment. Any replacement will be
employed at the GP rate.
4. The Company contends that the intention was that the
payments under C1 and C2 of Labour Court Recommendation No.
10117 would be applied to the agreed standard rate for the
job, not to any personalised rate.
RECOMMENDATION:
5. The Court, having regard to the conduct of negotiations,
considers that the Union's interpretation of the agreement is
reasonable and recommends accordingly.
~
Signed on behalf of the Labour Court
John M. Horgan
________________________
24th February, 1988. Deputy Chairman.
A.K./J.C.