Labour Court Database __________________________________________________________________________________ File Number: CD88641 Case Number: LCR12027 Section / Act: S67 Parties: BUS EIREANN - and - C.I.E. TRADE UNION GROUP;NATIONAL BUSWORKERS' UNION |
Claims on behalf of 932 road passenger operatives for an increase in meal and lodging allowances and tour expenses.
Recommendation:
8. Having considered the submissions made by the parties the
Court is of the opinion that no major amendment to the allowances
or expenses in question is warranted beyond the normal adjustments
proposed by the Company. The Court therefore recommends that the
Company's offer amended only to provide for an overnight allowance
of #8 be accepted by the workers concerned.
Division: Mr O'Connell Mr McHenry Mr O'Murchu
Text of Document__________________________________________________________________
CD88641 RECOMMENDATION NO. LCR12027
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: BUS EIREANN
and
C.I.E. TRADE UNION GROUP
NATIONAL BUSWORKERS' UNION
SUBJECT:
1. Claims on behalf of 932 road passenger operatives for an
increase in meal and lodging allowances and tour expenses.
BACKGROUND:
2. In early, 1987 the Unions served a claim for a realistic
increase in meal and lodging allowances and tour expenses. A
meeting took place with Management in July, 1987 at which it
undertook to examine the claim.
3. In October, 1987 the Company made the following offer:-
Existing Rates Proposed New Rates
#3.00 first meal allowance #3.16
#1.95 second meal allowance #2.06
#7.20 overnight #7.60
These increases were based in line with the increase in the
Consumer Price Index (C.P.I.) since the last revision of rates in
May, 1986. The Company advised that in relation to the tour
expenses that as the contract rates had been agreed for tour work,
the expenses would have to remain the same i.e:-
#16.10 - Brochure Tours
#14.50 Fan Specials
#16.10 Extended Specials
#16.95 Limo Tours
4. The Company's proposals were rejected and the matter was
referred to the conciliation service of the Labour Court on 27th
May, 1988. A conciliation conference was held on 26th July, 1988.
As no agreement was possible both parties consented to a referral
to the Labour Court for investigation and recommendation. A Court
hearing was held on 5th September, 1988.
GROUP'S ARGUMENTS:
5. 1. The level of allowance is not realistic when it is
compared to the actual cost of a relativity modest meal. This
is borne out by the fact that many employers in the
distribution industry pay allowances well in excess of that
being offered by the Company (details supplied to the Court).
2. Drivers on long runs would qualify for the first meal
allowance but it would only be in the case of overtime or an
overnight that they would qualify for the second meal
allowance. The proposed #3.16 is such that it is forcing the
workers to purchase 'junk food' such as burgers and chips
etc., which is not at all satisfactory given the onerous task
they undertake in driving a bus. This type of diet obviously
'takes its toll' on drivers' health and their ability to
perform tasks properly.
3. Of much more significance, however, is the derisory offer
of #7.60 for an overnight stay. We have made enquiries from
Bord Failte and they inform us that the minimum cost of B&B in
a Guesthouse is #12 and that this can rise to #14 in the
cities and large towns around the country. The fact that
someone does stay away from home overnight would not present a
saving to that person's household, which is all the more
reason to have the overnight allowance properly reflect the
present overnight costs in full.
N.B.U.'S ARGUMENTS:
6. 1. The Company's offer will not cover the workers' expenses.
The Union is as anxious as anyone else to ensure services
operate. However workers subsidising these services whereby
they have to pay their own expenses out of their own pockets
can no longer be tolerated.
2. With regard to tour expenses it must be pointed out that
irrespective of the length of day worked, a days basic pay
plus expenses is all that is paid. When an operator opts for
tour work he loses shift pay, overtime, spreadover allowance
and waiting time (details supplied to the Court). While the
Company provide overnight accommodation, the operator has to
pay for all his meals. There is no extra for this.
3. Most of the tour staff come off shifts or boards which are
far more lucrative than the tour they operate. The reason
they do this is because they have an aptitude for this type of
work, and this should not be a punishing factor against them.
They work long hours commencing at 8.00 a.m. never finishing
before 7.00 p.m. and in some cases as late as 11.30 p.m..
These workers deserve maximum consideration and the Union asks
the Court to recommend a substantial increase in their
expenses with a fair period of retrospection in view of the
time they have been waiting for an increase.
COMPANY'S ARGUMENTS:
7. 1. The Company's offer is based on the rise in the C.P.I.
since the date of the last review in May, 1986. This is in
line with previous practice in road passenger provincial
operations and has been upheld by the Labour Court. The
allowances paid are not intended as full compensation for the
outlay incurred but are rather a subsidy towards the cost.
2. Since the last increase in May, 1986 the V.A.T. on food in
restaurants, has been cut from 23% to 10% and it is a fact
that inflation has reached its lowest point since the mid
1970's. For the year to mid May, 1988 it was only 1.8%.
Allied to this there is also a much wider variety of food
outlets in operation at the present time where food is
available at a wider range of prices. The Company has
continuously pointed out that given its financial state and
the present economic climate, increases above the rate of
inflation cannot be considered.
3. Bus Eireann has a contractual arrangement for the
operation of tours with the C.I.E. tours organisation and must
agree on set rates and charges before the commencement of the
tours season. The Company is severely constrained in so far
as any increase in costs in this area cannot be recouped. In
addition to this the C.I.E. tours organisation has indicated
to Bus Eireann that even more competitive rates for next year
will be needed if we are to retain the business.
4. Most road passenger operatives are in a position to avail
of reasonably priced overnight accommodation as they remain at
outbased locations on a weekly basis. A great number also
travel home from these locations rather than stay overnight
and use the lodging allowance to cover their mileage costs.
5. Given the Company's critical financial situation any
additional costs over and above the increase offered will
place the future of the Company and the jobs of the road
passenger operatives in jeopardy. The Company is also faced
with competition on its profit making routes from private
operators who work on much lower rates of pay and less
advantageous conditions of service than Bus Eireann. It is
for these reasons that any cost increasing claims must be met
as far as possible on a self-financing basis. The Company is
striving to adhere to the Government directive to break-even.
RECOMMENDATION:
8. Having considered the submissions made by the parties the
Court is of the opinion that no major amendment to the allowances
or expenses in question is warranted beyond the normal adjustments
proposed by the Company. The Court therefore recommends that the
Company's offer amended only to provide for an overnight allowance
of #8 be accepted by the workers concerned.
~
Signed on behalf of the Labour Court
John O'Connell
________________________
16th September, 1988 Deputy Chairman.
M.D./J.C.