Labour Court Database __________________________________________________________________________________ File Number: CD89188 Case Number: LCR12444 Section / Act: S67 Parties: IRISH LIGHTS - and - AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION |
Claim by the Union on behalf of approximately 100 light keepers concerning the Commissioners' right to implement compulsory redundancies and the terms of any such redundancies.
Recommendation:
5. The Court is of the view that the employees of the
Commissioners of Irish Lights are not Public Servants and
accordingly are not covered by the Redundancy provision for Public
Servants contained in the Programme for National Recovery. The
Commissioners therefore were not in breach of that Programme when
they issued Redundancy notices to their staff.
Having regard to the fact that the Commissioners have indicated
that the first compulsory redundancies are unlikely to occur
before 1991 the Court recommends that the terms offered by the
Commissioners (including the #4,000 lump sum) be accepted both by
those who have already taken and those who wish to take voluntary
redundancy.
The Court notes that the #4,000 lump sum referred to above is
related to current Social Welfare entitlements. The Court
recommends that the amount be reviewed again in 1991 or whenever
the first compulsory redundancies take place in the light of all
the circumstances pertaining at that time.
Division: Ms Owens Mr McHenry Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD89188 RECOMMENDATION NO. LCR12444
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: IRISH LIGHTS
AND
AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim by the Union on behalf of approximately 100 light
keepers concerning the Commissioners' right to implement
compulsory redundancies and the terms of any such redundancies.
BACKGROUND:
2. The Commissioners of Irish Lights are the general lighthouse
authority for Ireland and are responsible for maintaining
navigational aids around the whole coast of Ireland. Funding is
derived from ship owners who pay light dues to the General
Lighthouse Fund which is administered by the Department of Trade
and Industry in London. In addition, the Commissioners receive an
annual subvention from the Irish Government. In early, 1985, the
Commissioners informed the Union that they wished to commence
discussions on the complete automation of all lighthouses around
the coast. This arose as a result of a decision by the Department
of Trade and Industry in London to automate and de-man all Irish
lighthouses over a 10 year period, resulting in a total loss of
all lightkeeping jobs. (A similar automation programme was also
drawn up for lighthouses in England, Scotland and Wales). The
Commissioners intend to automate lighthouses at the rate of 2 per
year, with the last lighthouse being automated in March, 1997.
To-date the automation and de-maning programme has been catered
for by natural wastage, early retirement and voluntary redundancy.
However, it is apparent that these methods will not be sustainable
and compulsory redundancies will be required. By way of
compensation the Commissioners have offered terms identical to the
terms of the British Civil Service Pension Scheme relating to
redundancy. The Commissioners operate under the British scheme as
a result of being established under the Merchant Shipping Act,
1894. The Union rejected compulsory redundancies and indicated
that voluntary redundancy was not acceptable on the terms offered
by the Commissioners. Agreement could not be reached at local
level and on 22nd December, 1987, the dispute was referred to the
conciliation service of the Labour Court.
Conciliation conferences were held on the following dates -
15th February, 21st March, 9th November, 1988 and 23rd February,
1989. During the course of the discussions the Commissioners
indicated that they had great difficulty in persuading the
Department of Transport, London, and the Department of the Marine,
Dublin, that further compensation should be added to the terms on
offer. An improvement in the terms of the Pension Scheme would
require an Act of the British Parliament. However, on the basis
that it would achieve a settlement, the Commissioners were given
authority to offer an additional lump sum of #4,000 to those under
40 years of age who would not qualify for an immediate annual
compensation payment or actuarial compensation. This lump sum
equated approximately to the short term social welfare benefits
payable to a married man in the period immediately following
redundancy. This was not acceptable to the Union and on 23rd
February, 1989, the dispute was referred to the Labour Court for
investigation and recommendation. The Court investigated the
dispute on 18th May, 1989.
UNION'S ARGUMENTS:
3. 1. The lightkeepers are classified as Class D1 social welfare
contributors. This contribution class is described as
consisting of 'permanent and pensionable employees in the
public service'. On the cessation of their employment,
workers in this class are effectively deprived of benefit,
thereby supporting the premise that their employment is none
other than permanent.
2. Permanent and pensionable employees in the public service
cannot, under the terms of the Programme for National Recovery
be made compulsorily redundant. Lightkeepers are in essence
public servants in that they are employed by a public
corporation which is part of the infastructure of the State.
The State contributes towards the cost of running this body,
in turn contributing towards funding pay and conditions for
the lightkeepers.
3. The pay and allowances for lightkeepers have for some time
been linked to that of the civil service. This further
supports the contention that their jobs are permanent and
pensionable. On appointment the lightkeepers were not given
to believe that their employment was other than for the
duration of their working lives. Indeed, during wage
negotiations the Commissioners have often pointed out that the
lightkeepers were in guaranteed employment and have used this
to argue for lower wage increases.
4. On 20th June, 1977, one of the Commissioner's gave a
commitment to all lightkeepers that for 'their time' there
would be no redundancies. At a meeting with the personnel
section on 23rd July, 1983, the Union was informed that the
Commissioners had no intentions to make anyone redundant.
3. 5. Lightkeepers who were initially employed as general
workers were Class A1 social welfare contributors. When
appointed lightkeepers they changed to Class D1. This was
obviously because they were considered permanent. If the
Commissioners make lightkeepers compulsorily redundant it
would be a breach of the employee's legitimate expectation of
remaining in employment until pensionable age.
6. The Commissioners have argued that they have in the past
made people compulsorily redundant. However, most of those
who were made redundant were temporary employees whilst others
were offered alternative employment.
7. The Union requests the Court to decide if workers
classified as Class D1 social welfare contributors are in
permanent and pensionable employment and if so, can they be
made compulsorily redundant. If this is the case, the Court
is requested to distinguish between compulsory and voluntary
redundancies and recommend enhanced terms for any keeper who
is forced to go on a compulsory basis.
COMMISSIONERS' ARGUMENTS:
4. 1. It is the Commissioners' policy to provide continuity of
employment as far as possible, however, their employees are
not immune from being made redundant. The Commissioners
cannot retain in service personnel for whom they have no work,
and do not accept that their employees have an entitlement to
employment for the duration of their working lives.
2. This is not the first occasion on which Class D insured
employees in the Commissioners' employment have been declared
compulsorily redundant. In 1971, tender ratings were made
redundant, as were lightshipmen in 1982, on the completion of
the programme of demaning and automating lightvessels.
3. None of the Commissioners' employees are classified as
public servants - they are employees of a statutory authority
whose operation is funded in the main by the General
Lighthouse Fund. Paragraph 11 of Section II of the Programme
for National Recovery states that the Government are committed
to the need for achieving a reduction in the number of public
service employees on a voluntary basis. Paragraph 11 is not
relevant to Irish Lights employees as they are not public
servants.
4. Because the terms on offer are laid down in the Irish
Lights Pension Scheme, which has been approved by the Revenue
Commissioners, lump sum benefits payable under the Pension
Scheme are tax free. The same benefits would apply to all
pensionable employees made redundant and the Commissioners
have no authority from their sponsoring Government Departments
to vary the terms of the Pension Scheme for any group of
employees.
4. 5. The Union, in seeking improved terms on compulsory
redundancy, are confusing the issue. The position is that all
lightkeepers have been given notice that they will be made
compulsorily redundant either on or before 1997, and in the
interim, the Commissioners are prepared to consider
applications from those who wish to leave early to take up
alternative employment. A voluntary redundancy situation
therefore does not exist.
6. The Commissioners have authority to implement the lump sum
payment of #4,000 in certain cases, only if it will ensure
that the terms on offer are accepted. This payment is outside
the redundancy terms of the Irish Lights Pension Scheme. It
was offered on the basis that it would achieve agreement of
the redundancy terms which include the concept of compulsory
redundancy. This payment could be affected by the Government
statement in the 1989 Budget concerning the extension of
social insurance cover to those on modified rates.
RECOMMENDATION:
5. The Court is of the view that the employees of the
Commissioners of Irish Lights are not Public Servants and
accordingly are not covered by the Redundancy provision for Public
Servants contained in the Programme for National Recovery. The
Commissioners therefore were not in breach of that Programme when
they issued Redundancy notices to their staff.
Having regard to the fact that the Commissioners have indicated
that the first compulsory redundancies are unlikely to occur
before 1991 the Court recommends that the terms offered by the
Commissioners (including the #4,000 lump sum) be accepted both by
those who have already taken and those who wish to take voluntary
redundancy.
The Court notes that the #4,000 lump sum referred to above is
related to current Social Welfare entitlements. The Court
recommends that the amount be reviewed again in 1991 or whenever
the first compulsory redundancies take place in the light of all
the circumstances pertaining at that time.
~
Signed on behalf of the Labour Court,
Evelyn Owens
___23rd___June,____1989. ___________________
B. O'N. / M. F. Deputy Chiarman