Labour Court Database __________________________________________________________________________________ File Number: CD89821 Case Number: LCR12777 Section / Act: S67 Parties: UNIVERSITY COLLEGE DUBLIN - and - IRISH FEDERATION OF UNIVERSITY TEACHERS |
Dispute concerning a 10% charge made by the College in respect of deduction at source of Union dues.
Recommendation:
7. Having considered the submissions from the parties the Court
recommends that the charge of 10% should not be made from the
April, 1990 deductions of the Union's subscriptions or thereafter.
Recognising that there was a start-up cost to the College the
Court does not recommend concession of the Union's claim for the
repayment to the Union of the monies so far withheld under the 10%
arrangements. The Court notes that the Union is prepared to enter
into negotiations on other aspects of the Agreement for D.A.S. in
order to reduce the cost to U.C.D. of administering the scheme.
Division:
Text of Document__________________________________________________________________
CD89821 RECOMMENDATION NO. LCR12777
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: UNIVERSITY COLLEGE DUBLIN
AND
IRISH FEDERATION OF UNIVERSITY TEACHERS
SUBJECT:
1. Dispute concerning a 10% charge made by the College in respect
of deduction at source of Union dues.
BACKGROUND:
2. In 1985, following discussions over a number of years the
College put forward a proposal for a Deduction at Source (D.A.S.)
scheme in respect of Union dues. Included in the scheme was a
proposal to retain 10% of all dues deducted to defray
administration costs. The Union objected to the 10% deduction
fee.
3. In August, 1986 the Union signed an agreement in respect of
the D.A.S. scheme. The Union informed the College authorities at
the time that it was signing the agreement without prejudice to
pursuing the matter of the 10% retention fee further through the
normal industrial relations machinery.
4. Subsequent to the scheme being introduced the Union exchanged
correspondence with the College on the matter. The issue was
referred to the conciliation service of the Labour Court on 19th
June, 1989. A conciliation conference was held on 18th July,
1989. As no agreement was reached the parties consented to a
referral to the Labour Court for investigation and recommendation.
A Court hearing was held on 8th March, 1990, a date suitable to
the parties.
UNION'S ARGUMENTS:
5. 1. D.A.S. schemes operating without charge have been well
established for some time now. They have been recommended by
the Labour Court, Employer Labour Conference and the
International Labour Organisation (details supplied to the
Court).
5. 2. Other unions, with a much bigger membership nationwide
than the Union, have not pursued their objections to the
charge vigorously because it only represents a small
percentage of their total income. The Union has a small
membership and the charge represents a significant percentage
of its income (details supplied to the Court).
3. As regards the College the amount involved is trivial when
compared to its overall budget. The College has claimed that
the charge is justified in order to cover the cost of
administering the scheme. However, it has not been prepared
to demonstrate that this is the actual cost. The money
collected is paid to the Union on a quarterly basis, thus the
College derives interest on all of the sum collected during
the three month period. The development of a shop-steward
arrangement for the collection of Union dues is almost
impossible and if implemented would put at risk the survival
of the Union in the College and, indeed, financially endanger
it elsewhere.
COLLEGES ARGUMENTS:
6. 1. The provision of a union dues deduction and accounting
service for the unions is not costless. The design and the
development of the scheme were undertaken at a substantial
cost which was borne entirely by the College. In addition the
College incurs the operating cost which arises from the
running of the scheme. At the present time the College is
obliged to operate under severe financial constraints so it
must attempt to minimise costs, and to seek income to offset
costs wherever possible. The income it receives makes a small
but useful contribution.
2. The College provides a service for the unions which they
evidently find very useful. The entire process of
calculating, collecting and accounting for their members' dues
has been taken over by the College. Each union receives at
the end of each quarter a cheque supported by a detailed
summary of contributions, and union officials and shopstewards
are relieved of a task which otherwise they would find
difficult and time consuming. For this service a charge of
10% of the total collected is made. This is by no means
excessive. Evidently it represents good value to the unions,
including the IFUT, which have availed of the scheme, and
continue to avail of it, in spite of their complaints about
it.
3. The College considers that by operating the deduction
scheme it is providing a valuable and useful service to the
unions. It considers that the charge made is justified and it
asks the Court to recommend that no change be made in the
present arrangements.