Labour Court Database __________________________________________________________________________________ File Number: CD8887 Case Number: LCR11745 Section / Act: S67 Parties: ADVANCE TYRE COMPANY LIMITED - and - IRISH TRANSPORT AND GENERAL WORKERS UNION |
Replacement policy of depot vehicles.
Recommendation:
5. The Court having considered the submissions from the parties
recommends that:-
(a) the parties enter immediately into negotiations to agree
which depots should have vans or private cars.
and
(b) where it is decided that vans should be assigned to depots
the parties negotiate buy-out terms.
Division: Ms Owens Mr Shiel Mr Devine
Text of Document__________________________________________________________________
CD8887 RECOMMENDATION NO. LCR11745
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: ADVANCE TYRE COMPANY LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
AND
IRISH TRANSPORT AND GENERAL WORKERS UNION
SUBJECT:
1. Replacement policy of depot vehicles.
BACKGROUND:
2. The Company is engaged in the sales/distribution of tyres and
employs 140 workers. The Company was taken over in 1986 and early
in 1987 the Company put into its depots in Carlow and Letterkenny,
Toyota Hiace vans. The depot manager in Carlow who had returned
to the Company from another organisation objected to this on the
basis that he had accepted the position on the understanding that
he would be provided with a car. A local level meeting was held
on 4th May, 1987 following which the Company confirmed its
position (see Appendix A). The Union rejected this on the basis
that it represented a significant change in the conditions of
employment of depot managers as for the first time pick-up trucks
and vans were listed among the type of vehicle which could be
supplied to a depot manager. Depot managers have since been
changed in some other depots and have been supplied with vans. On
17th June, 1987 the matter was referred to the conciliation
service of the Labour Court and a conciliation conference was held
on 15th September, 1987. The Company's position is that decisions
on vehicles in depots should be based on the needs of the depot
and suggested that where current cars were being replaced by a van
the depot manager would be sold the existing vehicle at a nominal
sum. The Union's position is that cars were always considered
part of the conditions of employment of the depot managers and
that cars should be replaced by cars and not vans. No agreement
could be reached and on 7th December, 1987 the matter was referred
to the Labour Court for investigation and recommendation. A
Labour Court hearing was held on 24th February, 1988.
UNION'S ARGUMENTS:
3. 1. It is clear that the Company's intention is to
systematically replace all depot managers cars with vans.
For at least the last 10 years all depot managers have had a
Company car which is an integral part of the depot managers
remuneration and for which he is liable for income tax.
3. They were introduced generally in 1974 as part of a bonus
scheme (details supplied to the Court) and by 1978 all depots
had a company car (details supplied to the Court). All
managers have been informed at interview that a company car
was being supplied and in the past the existence of a company
car has been used by the Company as an argument in wage
negotiations.
2. The Company's letter of 11th May, 1987 was the first
document that listed pick-up trucks and vans among the type of
vehicle which could be supplied to the depot manager. All
previous company documents (details supplied to the Court)
referred to cars, company cars, depot cars, etc. and all made
it clear that these were allocated to depots for depot
managers use. There is therefore evidence that the Company is
proposing a change in an employment condition without the
agreement of the union. A van is not a suitable replacement
for a company car for personal use. The Company's proposal
that the depot managers purchase the existing vehicles at a
nominal price is not feasible. Several of the existing fleet
are 1981 and 1982 models which would need to be replaced, and
insurance and tax costs would have to be borne by the depot
managers.
3. There should be no change in the Company's car replacement
policy. The company car is part of the depot manager's
remuneration and has to be maintained and company cars should
be replaced with cars of 1300 c.c type. In particular the
depot manager in Carlow should be provided with a company car
as promised at the interview.
COMPANY'S ARGUMENTS:
4. 1. Since 1980 the Company has been rationalising, but in
spite of this has incurred substantial trading losses in the
last few years (details supplied to the Court). The Company
was taken over in 1986 and at that time the solicitors acting
for both the former and new owner found that no person had a
specific entitlement to a depot vehicle.
2. New depot managers have been appointed in a number of
locations and new Company vans introduced. The Company's
policy in relation to depot vehicles was made clear to these
managers prior to their taking up position and there was full
acceptance.
3. The Company's current policy is in line with previous
policy as set out in various circulars from 1972 on (details
supplied to the Court). Future decisions on the type of
vehicles placed in depots must be made based on the needs of
the particular depot, the needs of the depot are primary this
is in line with previous policy and as set out in the
Company's letter of 11th May, 1987. In the present
circumstances it is unrealistic for the depot managers to
expect depot vehicle replacement to be on the basis of private
cars.
RECOMMENDATION:
5. The Court having considered the submissions from the parties
recommends that:-
(a) the parties enter immediately into negotiations to agree
which depots should have vans or private cars.
and
(b) where it is decided that vans should be assigned to depots
the parties negotiate buy-out terms.
~
Signed on behalf of the Labour Court.
Evelyn Owens
___16th___March,___1988. ___________________
T. O'M. / M. F. Deputy Chairman
APPENDIX A
OUTLINE OF COMPANY LETTER OF 11TH MAY, 1987
TO UNION RE: POLICY ON DEPOT VEHICLES
'Vehicles are allocated to each depot at the discretion
of the Company from time to time, depending upon cost
factors and the circumstances applying to the specific
depot.'
Depot vehicles are typically a combination of Pick-up Truck, Van,
Stationwagon, utility type or saloon car, depending upon type and
volume of business transacted. Depot Managers have the use of a
depot vehicle for private mileage. They must re-imburse the
Company for fuel costs involved in private use. Company business
must always take precedence over the Depot Managers' requirement
to use the vehicle for private mileage.
As I mentioned at our meeting, the economic and logistical
circumstances of each depot determine the type of vehicle(s)
allocated to the depot.