Labour Court Database __________________________________________________________________________________ File Number: CD88770 Case Number: LCR12377 Section / Act: S67 Parties: NEW LIMERICK GAS - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
Claim by the Union for Compensation for loss of earnings.
Recommendation:
5. The Court in view of the submissions made by the parties, and
the subsequent correspondence, is of the opinion that the standard
formula for compensation for losses arising from changes in the
standby arrangements is fair and recommends that it should be
accepted by the workers concerned. However in view of the special
circumstances in the case of the worker who will lose earnings
from standby completely the Court recommends that in his case he
be paid a further #250.
Division: Mr O'Connell Mr Heffernan Mr O'Murchu
Text of Document__________________________________________________________________
CD88770 RECOMMENDATION NO. LCR12377
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: NEW LIMERICK GAS
BORD GAIS
AND
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim by the Union for Compensation for loss of earnings.
BACKGROUND:
2. The claim concerns 1 storeman, 1 foreman, and 4 general
operatives. The workers concerned were previously employed by
Limerick Corporation, and they used to benefit from call-out
payments. The Union, on behalf of the workers, sought
compensation for the losses involved. The Company offered the
following formula for compensation "5 times the agreed weekly loss
each year the rate has been held, to a maximum of 5 years." The
Union considered this offer to be unacceptable, and sought an
improvement on it. Agreement could not be reached at local level,
and on 23rd February, 1988 the matter was referred to the
conciliation service of the Labour Court. A conciliation
conference took place on 26th April, 1988. Agreement was not
reached. On 12th October, 1988 the matter was referred to the
Labour Court for investigation and recommendation. A Court
hearing took place in Limerick on 23rd November, 1988. Subsequent
to the hearing, the Company wrote to the Court alleging that the
money paid to the workers for stand-by was not super-annuable.
There ensued a prolonged exchange of correspondence which ended
when the Company acknowledged that the payments were
superannuable.
UNION'S ARGUMENTS:
3. 1. The Company are taking an unfair advantage of the workers
in that it is trying to apply the agreed formula within the
industry for compensation for losses, while at the same time
refusing to concede parity of wages. The Company is not bound
by any formula which has operated in the past in other
companies. In its submission to the Court in respect of
LCR12018, the Company stated, inter alia, ".... it operates
as a completely separate and independent commercial entity".
2. One worker in particular has suffered a substantial loss,
and in the current economic climate this is particularly
damaging. The workers have co-operated with the Company since
1987, despite its derisory offer of compensation. The Company
should substantially increase the offer it made.
COMPANY'S ARGUMENTS:
4. 1. The offer made by the Company is generous in the light of
recent recommendations on compensation made by the Court
itself. (Details supplied to the Court).
2. The changed status of the Limerick Gas Company operation
has highlighted the commercial and financial realities which
the new organisation has to face. Projections indicate that
the new Company will trade at a financial loss for a
considerable period of time. (Details supplied to the Court).
As of 31st December, 1988, Limerick Gas Company had
accumulated losses of #1.46 million. The fact that the
Company has been able to maintain employment and current wages
is in itself a major achievement.
3. The Company must take into account the major repercussive
effects that any increase in its offer would have both within
the Company and in the local industrial area. The Company's
offer is based on a formula which has been used extensively in
similar compensatory cases. The Company would argue that
little or no loss in earnings has been incurred by most of the
claimants because of the increased incidence of call-out which
has occurred since the conversion to natural gas and the
resultant additional earnings accrued. (Details supplied to
the Court).
RECOMMENDATION:
5. The Court in view of the submissions made by the parties, and
the subsequent correspondence, is of the opinion that the standard
formula for compensation for losses arising from changes in the
standby arrangements is fair and recommends that it should be
accepted by the workers concerned. However in view of the special
circumstances in the case of the worker who will lose earnings
from standby completely the Court recommends that in his case he
be paid a further #250.
~
Signed on behalf of the Labour Court
John O'Connell
_________________________
9th May, 1989. Deputy Chairman
P.F./M.F.