Labour Court Database __________________________________________________________________________________ File Number: CD88940 Case Number: LCR12285 Section / Act: S67 Parties: BORD NA MONA - and - MANAGEMENT SCIENCE AND FINANCE |
Re-deployment of craft analysts.
Recommendation:
5. Having considered the submissions made by the parties the
Court is of the opinion that in light of the situation at present
prevailing in the Company that the Company's offer to the workers
concerned i.e. the offer specified in the letter of 26th July,
1988 plus the #500 lump sum - is reasonable in the circumstances
and should be accepted by the Union.
Division: Mr O'Connell Mr Collins Mr Devine
Text of Document__________________________________________________________________
CD88940 RECOMMENDATION NO. LCR12285
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: BORD NA MONA
and
MANAGEMENT SCIENCE AND FINANCE
SUBJECT:
1. Re-deployment of craft analysts.
BACKGROUND:
2. In 1976 a works measurement system Maintenance Cost Control
(M.C.C.) was introduced into the Bord's workshops. Craft analysts
were recruited from the craft area within the Bord to set
standards for craft work and to monitor these standards. The
posts were staff positions with accompanying benefits. In 1988
the Bord terminated the scheme as part of an overall cost
reduction plan thereby eliminating the post of craft analyst. A
voluntary/redundancy/early retirement package was circulated to
all staff. The redundancy provisions of the package provided for
the payment of statutory redundancy entitlements together with a
severance lump sum of four weeks pay for each year of service.
Fifty per cent of the craft analysts have availed of the
redundancy package, others have reverted to the craft grade, and
some have been redeployed in other staff areas. There are five
craft analysts remaining who wish to be redeployed within the
staff areas. The Company's offer of compensation for redeployment
was as follows - where the analyst grade is made redundant and the
analyst postholder reverts to craft grade status - a once-off
redundancy payment equal to 4 times the weekly drop in pay
multiplied by the number of years service. This payment was to be
in full and final settlement of all changes in terms and
conditions of employment necessitated by the transfer from analyst
to craft grade. On transfer, all terms and conditions of
employment will be those applicable to the craft grade only. This
offer was rejected by the Union who claimed that it made no
provision for loss of conditions particularly loss of pension
rights. As no agreement could be reached in local discussions the
dispute was referred to the Conciliation Service of the Labour
Court on the 9th November, 1988. A conciliation conference was
held on the 2nd December, 1988 but no agreement was reached. The
dispute was referred to the Labour Court for investigation and
recommendation on the 8th December, 1988. A Court hearing took
place on the 19th January, 1989.
UNION'S ARGUMENTS:
3. 1. When the category of craft analyst was first formed, the
employees were recruited entirely from craft workers. The
very nature of the craft analysts' work meant continuous
conflict with the craft workers. The craft analysts appointed
were placed on staff conditions which included the staff
pension scheme, 5 extra days leave, 2 days extra casual leave,
2 months difference in sick pay leave and the working week
reduced by 1.5 hours. Approximately half of the craft
analysts accepted the voluntary redundancy package and
retired. The Company's offer of compensation for redeployment
was similar in formula to the voluntary redundancy package.
No consideration was given to compensation for loss of
conditions, particularly to loss of pension rights. The Union
approached the Company and requested that the remaining craft
analysts be re-deployed within staff areas, and that increased
compensation should be paid to those who volunteered to go
back to the craft areas, with a requirement that they remain
on the staff pension scheme.
2. At meetings with the Company and at the subsequent
conciliation conference the Union pointed out to Management
that some of its members would lose #17,500 over a five year
period by reverting to the craft grade and that the
compensation offered by the Company was inadequate. A number
of people had accepted the voluntary redundancy package rather
than be forced back to the craft grade where substantial
animosity had built up between the analysts and the craft
workers. Adequate compensation should be paid to those who
revert to the craft grade and serious consideration should be
given to their remaining on the staff pension scheme. In the
staff pension there was a widows and orphans scheme and it
would be very difficult to put a figure of compensation on
this.
3. The Company's suggested package would be equivalent to
between #1,500 and #3,000 for most of the members and this was
to compensate for a loss of #60 per week, 5 days less
holidays, less sick leave, longer working hours and inadequate
coverage for widows and orphans. The Company subsequently
offered a further #500 which the Union claims is still far
short of adequate compensation. The formula used by the
Company is inadequate and those workers who volunteered to go
back to the craft grade should get the following compensation
- a minimum of #2,500 up to five years' service and #500 per
year of service thereafter.
COMPANY'S ARGUMENTS:
4. 1. When the position of works analyst was eliminated, those
who did not wish to avail of the redundancy package were
offered suitable staff positions where these were available
within the employing works. Where no such staff position was
available the only practical alternative open to Management
was to offer the analyst a craft position in his own works.
Initially the reversion of analyst to craft grades was
resisted by the craft group of unions but following
representations to the Irish Congress of Trade Unions, and
direct discussions with the craft group of unions, this
resistance was withdrawn.
2. When the Union sought an agreement concerning the movement
of analysts to craft status, and a compensatory lump sum or a
phased reduction in salary the Company made a reasonable
offer. A total of 12 analysts have now reverted to the craft
grade and firm dates have been set for the redeployment of the
remaining analysts. These moves have taken place pending a
settlement of the Union's compensation claim although a number
of local works agreements have provided for analysts reverting
to craft status, to receive a once-off lump sum payment of
#500 in addition to the Bord's compensation package.
3. In view of the serious financial position facing the
Company (details supplied to the Court) and the need to reduce
costs, it was necessary to eliminate the overheads associated
with the M.C.C. system. Management have made every effort to
deal with the effects of this measure in the most reasonable
manner possible, having regard to the difficult financial
position in which it finds itself. An attractive voluntary
redundancy/early retirement package has been made available to
analysts wishing to leave the Company, while those wishing to
remain, have been accommodated in staff positions where
possible or offered employment as craftsmen with a
compensation package to cover the difference in pay and
conditions of employment. In fact, the compensation offered
is equivalent to a redundancy package based on the difference
between the analyst and craft rate.
RECOMMENDATION:
5. Having considered the submissions made by the parties the
Court is of the opinion that in light of the situation at present
prevailing in the Company that the Company's offer to the workers
concerned i.e. the offer specified in the letter of 26th July,
1988 plus the #500 lump sum - is reasonable in the circumstances
and should be accepted by the Union.
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Signed on behalf of the Labour Court
John O'Connell
______________________
23rd February, 1989 Deputy Chairman.
T.O'D./J.C.