Labour Court Database __________________________________________________________________________________ File Number: CD91582 Case Number: LCR13504 Section / Act: S26(1) Parties: IRISH RAIL - and - NATIONAL BUS AND RAIL UNION |
Claim by the Union on behalf of rail operative grades for an increase in meal and lodging allowance.
Recommendation:
5. Having considered the submissions made by the parties the
Court does not recommend concession of the Union's claim.
Division: Mr O'Connell Mr McHenry Mr Rorke
Text of Document__________________________________________________________________
CD91582 RECOMMENDATION NO. LCR13504
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: IRISH RAIL
and
NATIONAL BUS AND RAIL UNION
SUBJECT:
1. Claim by the Union on behalf of rail operative grades for an
increase in meal and lodging allowance.
BACKGROUND:
2. In July, 1990 the Unions representing rail operative grades
(S.I.P.T.U. and N.B.R.U.) submitted a claim for an increase in the
meal and lodging allowances, as the last increase was in December,
1988. The Company rejected the claim. Following a conciliation
conference held at the Labour Court in September, 1990, Management
agreed a 4½% increase with S.I.P.T.U. with effect from 28th
January, 1991. The increase was the equivalent of one year's rise
in the consumer price index (C.P.I.). The N.B.R.U. was not party
to these negotiations and was not notified of the increase at that
time. The Union was subsequently told by the Company that the
increase would be implemented in January, 1991. The Union
rejected the offer and submitted a claim for the full adjustment
of the allowances in line with the C.P.I. The issue was referred
to the Labour Relations Commission in February, 1991. A
conciliation conference was held on the 15th October, 1991 but no
agreement was reached. The dispute was referred to the Labour
Court by the Labour Relations Commission on the 5th November,
1991. The Court investigated the dispute on the 9th December,
1991.
UNION'S ARGUMENTS:
3. 1. The increase in the C.P.I. has become the yardstick over
the years for calculating the minimum increase required to
keep the meal and lodging allowances at a reasonable level.
Anything less represents a cost to the workers concerned which
worsens their conditions. The Company has argued over the
years that the rise in C.P.I. should be used in calculating
such increases in meal and lodgings allowances. The following
is an extract from the Company's submission in Labour Court
Recommendation 9568.
"The traditional method of increasing meal and lodging
allowances for all grades in the Company has been to
negotiate with the Unions increases which are in line
with the increases in the C.P.I. since the previous
adjustment".
The Company's offer was therefore based on the increase in the
C.P.I. since the previous adjustment. The Labour Court has
since 1979, upheld this method of adjusting these allowances
(L.C.R.'s 6466, and 6713 refer).
2. The workers concerned are among the lowest paid in the
country. Their expense rates are the lowest in the Company.
Their position should not now be worsened by having to accept
expenses below the increases in the C.P.I. The Union asks the
Court to recommend that the meal and lodging allowances paid
to rail operative grades should be increased in line with
increases in the C.P.I. for the entire period since these
allowances were last increased.
COMPANY'S ARGUMENTS:
4. 1. There are 2,300 workers in the rail operative grade of
which approximately 400 are represented by the N.B.R.U. The
Company's offer, which was communicated to the N.B.R.U. in
January, 1991, has been accepted by the group of unions
representing the majority of the workers. The increase which
was implemented with effect from 28th January, 1991 amounted
to 4.47%. While the C.P.I. increase between the date of the
last increase in allowances (December, 1988) and the present
one was 7.49%, the increase in C.P.I. in respect of food alone
is 3.64%. The Company provides accommodation at locations
where workers are required to rest away from home and deducts
only £1.10 per night although the full meal and lodging
allowances are paid.
2. This will be the first year since 1987, the year that
Iarnrod Eireann was established, that the deficit will exceed
Government subvention. The shortfall in Company finances will
be in the region of £4 million. There are considerable
financial difficulties ahead for the Company. The cost of
implementing the P.N.R. for 1991 will amount to £6.42 million.
The Company is in the process of implementing L.C.R. 13366
which will give an interim £4 p.w. increase in pay to rail
operative grades (including the workers concerned). This will
cost the Company £1 million in 1991. There are additional
costs arising from the implementation of a 39 hour week. In
light of the Company's financial situation Management feels
that its offer is fair and reasonable.
RECOMMENDATION:
5. Having considered the submissions made by the parties the
Court does not recommend concession of the Union's claim.
~
Signed on behalf of the Labour Court
John O'Connell
__________________
17th December, 1991 Deputy Chairman.
T.O'D./J.C.