Labour Court Database __________________________________________________________________________________ File Number: CD88743 Case Number: LCR12120 Section / Act: S67 Parties: COMMISSIONERS OF IRISH LIGHTS - and - AMALGAMATED TRANSPORT & GENERAL WORKERS' UNION |
Claim for a 15% increase in basic rates as a result of increased productivity brought about by rationalisation/ de-manning.
Recommendation:
7. The Court, having considered the submissions from both
parties, recommends that:
(a) the Union continue to co-operate with the manning of the Gray
Seal,
(b) when the rationalisation programme is fully implemented, the
Company agree to the payment of a lump sum of #750 to each of
the remaining 32 crew members, and
(c) such payment be made not earlier than January, 1991.
Division: Ms Owens Mr Collins Mr Devine
Text of Document__________________________________________________________________
CD88743 RECOMMENDATION NO. LCR12120
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: COMMISSIONERS OF IRISH LIGHTS
and
AMALGAMATED TRANSPORT & GENERAL WORKERS' UNION
SUBJECT:
1. Claim for a 15% increase in basic rates as a result of
increased productivity brought about by rationalisation/
de-manning.
BACKGROUND:
2. The Commissioners of Irish Lights are the general lighthouse
authority for Ireland and are responsible for maintaining aids to
navigation around the coast of the whole island. The dispute
before the Court involves the ratings employed by the
Commissioners on their two lighthouse tenders, the "Granuaile" and
the "Gray Seal". These two lighthouse tenders, which are based in
Dublin/Dun Laoghaire, transport men, stores and equipment to
lighthouses and lightfloats around the coast. In addition they
place lightfloats, LANBYs and buoys on stations and transport
technicians to and from these navigation aids for maintenance
purposes.
3. At the request of the Department of Transport in London, a
firm of management consultants carried out a comprehensive review
of the Commissioners' tender vessel requirements and concluded
that one tender could adequately service the Irish coast. The
Commissioners decided that for a one-ship operation they would use
a modified Granuaile with a reduced crew and that they would
withdraw the Atlanta from service. As it would take approximately
two years to set up a one-ship operation, it was necessary in the
interim to supplement the service given by the Granuaile and
approval was given to purchase an alternative vessel, re-named the
Gray Seal. Its purchase was approved on the understanding that it
would operate with a crew of 18 and would be sold at the
conclusion of the modifications to the Granuaile.
4. These changes entailed substantial reductions in manning
levels. Prior to the rationalisation manning levels stood at 104
and it is agreed that when the Granuaile is modified the number
left in employment will be 32. The Union considered these changes
would result in increased productivity for those remaining and
sought an increase of 15% in basic rates. This was rejected by
the Commissioners and following the failure of local level
discussions, the issues of a pay increase, manning levels,
improvement in conditions and the introduction of a general
purpose rating were referred to the conciliation service of the
Labour Court on the 21st March, 1988. Following two conciliation
conferences on the 5th May and the 12th September the issues of
manning and conditions were resolved and the outstanding issues
were referred to the Labour Court for investigation and
recommendation on the 3rd October. A Court hearing was held on
the 3rd November, 1988. At the hearing the Commissioners raised
the issue of the introduction of the general purpose rating and
stressed how important it was to the success of the
rationalisation programme. The Union, however, is totally opposed
to such a rating and informed the Court that while it was prepared
to accept it on the Gray Seal because of its temporary nature, it
was not acceptable for the Granuaile and that it had no mandate to
even discuss the issue.
UNION'S ARGUMENTS:
5.1 Given the scale of manning level reductions and the amount of
change associated with the rationalisation of the two
vessels, consideration of benefits to staff must be given.
It would appear that the Commissioners' priority is
operational costs with no regard being given to the remaining
staff.
5.2 At no time did the Union or the claimants resist the
Commissioners rationalisation programme, except to endeavour
to maximise jobs on the remaining vessel. Full co-operation
was agreed in respect of both the redundancy plan and the
ship transfers. Furthermore, as the claim only involves 32
workers, the Union does not consider the Commissioners'
arguments concerning budgetary restrictions to be
sustainable.
5.3 The Court is requested to recommend in favour of a phased
increase in rates for the remaining workers. The 15% claim
is not unreasonable considering the duties that will now have
to be undertaken by one ship with a reduced crew.
5.4 The Union is conscious of the terms of the Programme for
National Recovery in respect of increases and specific
clauses regarding no cost increasing claims. However, where
productivity through rationalisation gives rise to reduced
staff, changed conditions, increased efficiency, increased
flexibility and co-operation, the Union believes it is right
and proper to make a claim for a wage increase.
COMMISSIONERS' ARGUMENTS:
6.1 Apart from operating an efficient and cost effective tender
service, the major concern of the Commissioners, in the light
of the consultants' report, has been to maintain the highest
possible level of employment, bearing in mind the
competitiveness of the offshore industry and the accepted
manning norm in the other two lighthouse authorities'
vessels. The hope of the Commissioners in relation to the
"Gray Seal" is that during its two year utilisation period,
sufficient additional work can be found for the vessel
through sub-contracting it to the other two lighthouse
authorities and to harbour authorities which will convince
the sponsoring Departments (the Department of Transport,
London and the Department of the Marine, Dublin) that there
is a need for its indefinite retention in service and a
consequent saving of jobs.
6.2 Due to the changing nature of the Commissioners' marine
operations, the present crewing level of 26 ratings
constitutes an over-manning situation. Indeed, a manning
level of 16 ratings for the modified "Granuaile" can be
considered generous when compared with the fact that with the
same number of crew the other two lighthouse authorities'
tenders undertake the additional work of repairing, painting
and re-charging buoys at sea - which in this service is
carried out at workshops ashore and by technicians at sea.
The Commissioners, therefore, reject any claim for
productivity, flexibility or mobility. The Commissioners
maintain that it is possible to operate the "Granuaile" with
a reduced crew by virtue of the fact that they have
modernised the work practices, streamlined the method of
operations and provided more efficient equipment.
Furthermore, the ratings will only be required to work their
normal on board rosters with adequate rest periods as
heretofore.
6.3 The Commissioners derive their funds from home and foreign
shipping which pays light dues to the general lighthouse fund
which is administered by the Department of Transport, London,
in accordance with the Merchant Shipping Act of 1894. With
the continued contraction of the merchant shipping fleet,
shipowners have had to face increasing charges for light dues
in order to maintain the lighthouse services. This has led
to a situation where the payers have been pressing that the
overseeing Government Departments exercise their powers to
ensure that the lighthouse service operates more cost
effectively. As a result, the Commissioners have been placed
under severe financial and budgetary constraints.
6.4 The situation has now arisen where the shipowners, through
the sponsoring Departments, will no longer tolerate excessive
manning levels and have cut budgets to a level which leaves
the Commissioners with no option but to operate with the
proposed manning levels. Similar manning levels have been
achieved in the other two lighthouse authorities' tender
services without any additional payments having been made
and, accordingly, finance will not be made available by the
Departments for any productivity payments.
6.5 The existing pay package and other conditions of service
compare more than favourably with that available in the Irish
Shipping industry. Shipowners who finance the lighthouse
service would not tolerate a further widening of the pay gap
over their own employees should the Union's claim succeed.
The reduction in manpower has not led to a situation where
the Commissioners can pass on any benefits to the ratings due
to the fact that they have been given a fixed budget and
manpower complement to operate within. If the Commissioners
are to continue the operation of their tender service, they
must operate within these constraints.
RECOMMENDATION:
7. The Court, having considered the submissions from both
parties, recommends that:
(a) the Union continue to co-operate with the manning of the Gray
Seal,
(b) when the rationalisation programme is fully implemented, the
Company agree to the payment of a lump sum of #750 to each of
the remaining 32 crew members, and
(c) such payment be made not earlier than January, 1991.
~
Signed on behalf of the Labour Court
16th November, 1988 Evelyn Owens
DH/PG Deputy Chairman