Labour Court Database __________________________________________________________________________________ File Number: CD90138 Case Number: LCR12869 Section / Act: S67 Parties: AER RIANTA (SHANNON AIRPORT) - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning the rates of pay for temporary staff in the duty free shops at Shannon Airport.
Recommendation:
5. The Court having considered the oral and written submissions
of the parties recommends that the Union claim for restoration of
the rates of pay for temporary staff be conceded.
These rates to apply pending mutual agreement between the parties
on the rates of pay to be applicable to temporary staff in the
future.
Division: MrMcGrath Mr Collins Mr Walsh
Text of Document__________________________________________________________________
CD90138 RECOMMENDATION NO. LCR12869
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: AER RIANTA (SHANNON AIRPORT)
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning the rates of pay for temporary staff in the
duty free shops at Shannon Airport.
BACKGROUND:
2. The commercial structure of the Company at Shannon is divided
into three divisions i.e. catering division, mail order division
and shops division. This structure was set up in the early
seventies and in 1975 the Company and the Union reached agreement
on a commercial grading structure for staff in the three
divisions. In 1985 the Company and Union made an agreement on
working conditions and wages in respect of temporary staff
recruited annually during peak business periods. The 1985
agreement set rates for temporary staff under 19 years of age and
over 19 years of age respectively. In 1987/88 the Company
negotiated new rates of pay for temporary staff in the catering
and mail order divisions. In 1988/89 discussions took place
between the Company and Union regarding a new permanent wage scale
for staff in the shops division. The Company claims that these
discussions included the extension of the existing 19 years of age
and over temporary staff rate to the shops division and that this
was agreed at a meeting on 6th February, 1989. The Company
implemented the new lower temporary rates from February, 1989
onwards. The Union claims that there was no formal agreement on
the introduction of new lower temporary rates on 6th February,
1989 and that the old rates should be restored in accordance with
the 1985 agreement. No agreement was reached at local level and
the matter was referred on 8th January, 1990 to the conciliation
service of the Labour Court. A conciliation conference was held
on 27th February, 1990 at which no agreement was reached and the
matter was referred on 2nd March, 1990 to a full hearing of the
Labour Court which took place in Limerick on 10th April, 1990. No
agreement on the separate issue of a new rate for new permanent
staff had been reached between the parties before the hearing.
UNION'S ARGUMENTS:
3. 1. The Company and the Union held discussions in 1988/89 in
relation to permanent staff. There were never any discussions
on temporary rates and there was no formal agreement at the
meeting of 6th February, 1989 to implement new lower temporary
staff rates in the shops division.
2. In early February, 1989 new temporary staff were hired and
paid the old agreed rates for approximately two weeks and then
the new reduced rate was introduced. This was in
contravention of the 1985 agreement which has not been
terminated or superseded.
3. The Union accepts the right of the catering and mail order
divisions to negotiate their own agreements for their own
reasons. However such agreements cannot be imposed on the
shops division who had no input into these negotiations, and
did not benefit from the deals that were agreed for reduced
rates of pay.
4. It is logical to assume that any changes negotiated in
permanent staff rates would have some impact on temporary
rates. No changes have yet been agreed in respect of
permanent rates.
5. The Programme for National Recovery (P.N.R.) quite clearly
states that the pay of part-time and casual employees should
be controlled by existing agreements unless alternative
arrangements are mutually agreed. No alternative arrangements
have been mutually agreed and the matter in dispute is clearly
covered by the 1985 agreement. The old pay rates agreed under
the 1985 agreement for temporary staff should be restored from
the date that they were reduced.
COMPANY'S ARGUMENTS:
4. 1. Shannon Airport is severely threatened by the proposed
abolition of eastbound duty free sales in 1992. It is
estimated that 50% of the shops revenue will be lost. This
will have severe repercussions on pay rates and staffing
levels. With this in mind the Company sought agreement with
the Union on new rates of pay for new permanent staff and
offered the prospect of voluntary redundancies. During the
course of these negotiations the Company included the
extension of a new temporary staff rate for staff who are 19
and over which had been agreed with the other two divisions.
At a meeting with the Union on 6th February, 1989 it was
accepted that the new temporary staff rate would be introduced
into the shops division.
4. 2. The Company acted on the understanding it had with the
Union and reduced the rates of pay for temporary staff. The
Company is satisfied that these rates are fair and reasonable
and compare more than favourably with rates of pay in the
local area.
3. In the light of the threatened reduction in business in
1992 the Company has secured a reduction of temporary staff
rates from the catering and mail order divisions. This rate
should also be applied to the shops division.
RECOMMENDATION:
5. The Court having considered the oral and written submissions
of the parties recommends that the Union claim for restoration of
the rates of pay for temporary staff be conceded.
These rates to apply pending mutual agreement between the parties
on the rates of pay to be applicable to temporary staff in the
future.
~
Signed on behalf of the Labour Court,
Tom McGrath
___23rd___May,____1990. ___________________
A. S. / M. F. Deputy Chairman