Labour Court Database __________________________________________________________________________________ File Number: CD88453 Case Number: LCR12060 Section / Act: S67 Parties: ALLIANCE FRANCAISE - and - FEDERATED WORKERS' UNION OF IRELAND |
Claim by the Union for the reinstatement of permanent status to ten teachers.
Recommendation:
5. Having regard to submissions made by the parties the Court
accepts that in the light of the serious deterioration of the
financial situation at the time, the Alliance had no alternative
but to seek radical amendment of the teachers conditions. What is
not clear is whether this could have been achieved without the
ending of their permanent status. However as due to the passage
of time reinstatement on amended conditions seems clearly
impractical the Court recommends that the teachers concerned be
compensated by sums to the amount of two weeks' pay per year of
service.
Division: Mr O'Connell Mr McHenry Mr O'Murchu
Text of Document__________________________________________________________________
CD88453 RECOMMENDATION NO. LCR12060
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: ALLIANCE FRANCAISE
AND
FEDERATED WORKERS' UNION OF IRELAND
SUBJECT:
1. Claim by the Union for the reinstatement of permanent status
to ten teachers.
BACKGROUND:
2. Alliance Francaise is an international organisation devoted to
the propagation of the French language and culture. The Irish
branch is a registered Company with charitable status, governed by
a board of voluntary members. It is a non-profit making body.
Alliance Francaise employs approximately 30 teachers on a
part-time basis. Ten of the teachers employed by the organisation
had permanent contracts for 52 weeks of the year, with rates of
pay equivalent to category 3 of the Vocational Education Committee
rates. At the end of 1986 it became apparent that the financial
situation of the organisation was not good. Attempts to obtain
increased funding from the French government were not successful.
A number of cost saving measures were introduced, including the
cancellation of the permanent teaching contracts. The Union, on
behalf of the workers, objected to this. It was not prepared to
accept the replacement of full-time contractual employment by
casual part-time work. The Union claimed the restoration of the
teachers' contracts. Agreement could not be reached between the
parties at local level, and on 25th June, 1987, the matter was
referred to the conciliation service of the Labour Court. A
conciliation conference took place on 5th August, 1987. No
agreement was reached, and on 21st June, 1988 the matter was
referred to the Labour Court for investigation and recommendation.
A Court hearing took place in Dublin on 15th September, 1988.
UNION'S ARGUMENTS:
3. 1. The contracts of some of the teachers involved in this
case go back as far as 1976 (details supplied to Court). They
have given very loyal service to the Organisation. Their
contract of employment does not allow for a withdrawal, all
that it provides for is a review at the request of either
side. There was no such request made to the Union.
3. 2. If there were financial difficulties within the
Organisation there was an obligation on the employer to seek a
meeting with the Union to discuss ways and means of overcoming
the difficulties. The Union was prepared to examine the
position and to make a contribution. It was not prepared
however, to accept the termination of the permanent status of
the ten teachers.
3. The Union believes that if the teachers were employed in
an Organisation where they were covered by the Redundancy Act,
the Unfair Dismissal Act, and the Minimun Notice Act, they
would not have been treated in the manner in which they were.
An unfair advantage has been taken of the teachers.
4. There is no justification for replacing ten permanent
teachers with part-time hourly paid teachers. The
Organisation is still in operation, it has very valuable
property, and it receives a subvention from the French
government each year. The Union believes that the French
government has a moral obligation to honour the agreement or
to compensate the teachers.
5. The restoration of the teachers contracts is the only just
course of action. If the Organisation does not see fit to
honour it's contract with the teachers, then adequate
compensation must be paid. The Union requests the Court to
recommend in its favour.
ORGANISATION'S ARGUMENTS:
4. 1. Alliance Francaise, because of the general nature of its
aims as a non-profit making organisation, has not built any
reserves of a sufficient size to carry it in a period of
difficulty. Annual income and expenditure were always very
finely balanced, with falls in income resulting in a
curtailing of activities. A potential deficit of £28,000 led
the Board to undertake a review of the entire activity of the
organisation for 1987 and thereafter. Despite top-level
discussions in Paris, the Organisation was unable to achieve
any increase in subvention from the French government.
2. The alternative to achieving a reduction in costs was the
closure of the Organisation in Dublin. The largest single
area of expenditure is that of salaries and related staff
costs. All other areas of expenditure have been pared to a
minimum over previous lean years. It was proposed to reduce
the status of the ten teachers concerned in this dispute from
permanent half-time to non-permanent teachers with effect from
1st July, 1987. At the same time the Organisation proposed to
give priority to these teachers in the allocation of teaching
hours, in order to reduce the effect that the reduction of
status would have on their wages.
4. 3. The proposal involved the acceptance of alternative
conditions and not a termination of employment. No
redundancies arose as a result of the proposal. It was not
however, acceptable to the Union. The ten permanent half-time
posts were discontinued with effect from 1st July, 1987. All
of the teachers were invited by letter to apply for teaching
hours under the new conditions in September, 1987. Since they
declined to do this the organisation had no alternative but to
recruit new teachers on the terms proposed in the new
conditions.
4. Financial short-falls is the key element in the
difficulties faced by the Organisation. This can be
demonstrated by an examination of the Organisation's income
and expenditure accounts and budgets for the past number of
years (details supplied to Court). The Organisation has no
resources from which to finance its operations other than its
current income. This current income is only sufficient to
enable the Organisation to maintain it's present course. The
Organisation requests the Court to uphold it's position, and
to reject the Union's claim.
RECOMMENDATION:
5. Having regard to submissions made by the parties the Court
accepts that in the light of the serious deterioration of the
financial situation at the time, the Alliance had no alternative
but to seek radical amendment of the teachers conditions. What is
not clear is whether this could have been achieved without the
ending of their permanent status. However as due to the passage
of time reinstatement on amended conditions seems clearly
impractical the Court recommends that the teachers concerned be
compensated by sums to the amount of two weeks' pay per year of
service.
~
Signed on behalf of the Labour Court.
John O'Connell
___________________
6th October, 1988.
P. F. / M. F. Deputy Chairman.