Labour Court Database __________________________________________________________________________________ File Number: CD87662 Case Number: LCR11727 Section / Act: S67 Parties: AER LINGUS - and - FEDERATED WORKERS' UNION OF IRELAND;ELECTRICAL TRADES UNION |
Claim by the Unions on behalf of 65 instrument mechanics for licence payments in respect of Boeing 727 aircraft.
Recommendation:
5. The Court, having considered the submissions made by the
parties, is satisfied that an agreement was reached in relation to
licence payments for B727 aircraft. However, a misunderstanding
subsequently arose between them as to the application of that
agreement. The Court recommends that the parties negotiate and
agree the application of B727 aircraft licence payments in respect
of contract work.
Division: Mr Fitzgerald Mr Shiel Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD87662 RECOMMENDATION NO. LCR11727
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: AER LINGUS
and
FEDERATED WORKERS' UNION OF IRELAND
ELECTRICAL TRADES UNION
SUBJECT:
1. Claim by the Unions on behalf of 65 instrument mechanics for
licence payments in respect of Boeing 727 aircraft.
BACKGROUND:
2. Licences are issued by the Department of Tourism and Transport
in respect of aircraft types as they arrive on the Irish register.
The Company makes licence payments to Company licence holders in
respect of aircraft in its fleet. In the event of the Company
acquiring contracts to support customer aircraft types not in the
Company fleet specific arrangements are made to comply with
regulatory requirements for carrying out work on such aircraft
types. The Unions are claiming that the licence payment which
applies to other aircraft should also apply to B727 aircraft. The
Unions claim that instrument mechanics who are suitably licenced
are being denied their rights. The Company is arguing that the
B727 is not part of its fleet and that it could not be liable for
payments for aircraft not in its fleet. The payment for B727
licences was discussed with the Company in late 1984. The Union
argues that by letter, dated 7th January, 1985, the Company
indicated its intention to pay the licence as normal but
subsequent to this someone in the Personnel Section instigated
discussions designed to limit the number of workers applying for
B727 licences and to be selective in determining who receives
payment. The Company holds that licence payments, as per
agreement, related to aircraft in the Company's fleet and the B727
is not part of their fleet. An aircraft may be on the Irish
Register, which covers all aircraft in the country, but not in the
Company's fleet. The Company maintains that special arrangements
for payments exist for instrument mechanics who work on customer
aircraft, including the B727 aircraft, not in the Company fleet.
Negotiations at local level failed to resolve the issue and the
case was referred on 28th July, 1987, to the conciliation service
of the Labour Court. As no agreement could be reached at a
conciliation conference held on 19th August, 1987, the matter was
referred on 28th August, 1987, to the Labour Court for
investigation and recommendation. A Court hearing took place on
15th February, 1988.
UNIONS' ARGUMENTS:
3. 1. Standard practice, established over many years, obliges
the Company to make such payments to suitably qualified staff
for work carried out on Company and customer aircraft.
2. The instrument mechanics are particularly annoyed on this
issue, as at various times they have been told by Company
representatives that the B727 licence pay will be sanctioned.
Compass Licence (B727) has been paid but for some unknown
reason other qualifications have not been dealt with in a
similar manner.
3. By letter dated 7th January, 1985, the Company indicated
that it intended to pay the B727 licences as normal. Since
then the Company in various documents, including a submission
to the Labour Court on 14th November, 1985, has made reference
to B727 licence payments (details provided to the Court).
4. The Unions believe that the B727 licence payments should
be dealt with in the same way as all other licences and that
they up-date them as appropriate and in line with other
licences. If the Company has any proposals on change, then
the Unions are prepared to negotiate. However, the status quo
should remain until agreement is reached.
COMPANY'S ARGUMENTS:
4. 1. The new commercial environment in which the Company is
operating means that its survival depends on it being able to
match the lower costs of existing and potential competitors
across the whole range of the Company's business affairs. In
this context it would be most unwise to concede additional
'peripheral' increases, especially to those who already enjoy
very high earnings. The pay and conditions of instrument
mechanics are among the best available in Ireland.
2. Licence payments are regulated by the terms of the
Aircraft Technical Supervisors Agreement and the Aircraft
Tradesmens Agreement. Licence payments are made in respect of
aircraft in the Company's fleet per these agreements.
Suitable arrangements are entered into on behalf of customer
aircraft not operated by the Company. In the case of B727
licences such arrangements have already been made, (details
provided to the Court).
3. Concession of the claim would have far reaching
repercussions. There are currently 116 B727 licenced
personnel in the Company, who would attract payments,
totalling #36,000 per annum at current rates. Potentiality
this figure could rise to numbers equalling those applicable
to the B737 aircraft, i.e. 379 personnel.
4. Given the present situation of the airline, the Company
believes it would be contrary to the real interests of the
claimants and indeed to any group to concede a claim of this
nature.
RECOMMENDATION:
5. The Court, having considered the submissions made by the
parties, is satisfied that an agreement was reached in relation to
licence payments for B727 aircraft. However, a misunderstanding
subsequently arose between them as to the application of that
agreement. The Court recommends that the parties negotiate and
agree the application of B727 aircraft licence payments in respect
of contract work.
~
Signed on behalf of the Labour Court
Nicholas Fitzgerald
_______________________
4th March, 1988 Deputy Chairman.
B.O'N./J.C.