Labour Court Database __________________________________________________________________________________ File Number: CD9179 Case Number: LCR13173 Section / Act: S67 Parties: B & I LINE P.L.C. - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning the operation of time charter vessels.
Recommendation:
7. The Court, having considered the submissions in this case and
having regard to the urgency of the time charter situation
recommends as follows:
(a) The Union withdraw its objection to time charter on the
basis they proposed to the Court.
i.e. 35 days p.a. for the Munster and Leinster
21 days p.a. for the Copax ship and any
extension of time to be sympathetically
considered by the Union.
(b) The Company agree to upgrade the M.V. Bison as claimed by
the Union and implement in accordance with the
Union/Company Pay Agreement dated November, 1989.
(c) Both parties agree to the appointment of an assessor or
tribunal to examine and report on the outstanding Union
claims, the financing of same (including the upgrading of
the M.V. Bison) within the terms of the agreed 5 year
viability plan.
The assessor to report back to the I.R.O. and failing agreement at
that level to refer further to the Labour Court.
The Court so recommends.
Division: Ms Owens Mr Brennan Mr Devine
Text of Document__________________________________________________________________
CD9179 RECOMMENDATION NO. LCR13173
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 67
PARTIES: B & I LINE P.L.C.
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning the operation of time charter vessels.
BACKGROUND:
2. When ships in the Company are undergoing their annual overhaul
and are in dry dock a chartered ship is used as a replacement
vessel. There are two types of charters:
time charter ship - a ship which comes complete with crew.
bare boat charter - a ship which comes without a crew.
The Union has consistently opposed the use of time charters and in
July/August, 1990 there was a dispute over the use of a time
charter ship to replace the M.V. "Bison" and M.V. "Buffalo" while
in dry dock. This matter was subsequently referred to the Labour
Court and the Court's recommendation was as follows:
"The Court is of the view, that because of the difficult
financial position of the Company, the Union should withdraw
its objection to short term time charters on the
understanding that the Company address and negotiate on the
outstanding anomaly issues of salary and seniority within the
terms of the 5 year viability plan."
(L.C.R. No. 12975 of 24th August, 1990 refers).
3. Following this recommendation, local level negotiations took
place on both the salary and seniority issues. Agreement could
not be reached on the issue of seniority and this was the subject
of a Labour Court hearing in November, 1990, (L.C.R. No. 13102 of
4th December, 1990 refers). In relation to the salary issue
however agreement was not reached and in December, 1990 the
Company advised the Union that it wished to bring in a time
charter ship to replace its car ferries during their overhaul in
February, 1991.
The Union rejected this on the basis that the Company had not yet
complied with the intent of L.C.R. No. 12975 and dealt with the
outstanding issues. On 20th December, 1990 the matter was
referred to the conciliation service of the Labour Court. A
conciliation conference was held on 21st December, 1990, however
agreement could not be reached and on 7th January, 1991 the issue
of time charters was referred to the Labour Court for
investigation and recommendation, (the issue of seniority has now
been resolved). The Court investigated the dispute on 14th
January, 1991 and issued the following recommendation -
"The Court was asked by the Company to find that it had
implemented the terms of L.C.R. 12975. Having considered the
submissions from the parties and the additional information
given orally at the hearing the Court is not satisfied that
the spirit and intent of that recommendation have been
addressed in a satisfactory manner. The Court does not find
in favour of the Company and recommends accordingly. In view
of the urgency of the issue of "time charter" the Court
further recommends that the parties meet immediately to
resolve the outstanding issue of salary anomalies and in
particular the position of the M.V. Bison. The services of
an I.R.O. will be made available to the parties if required."
(L.C.R. No. 13155 of 16th January, 1991 refers).
4. Arising out of this recommendation two conciliation
conferences took place on the matter. At the second conciliation
conference the Company put forward self-financing proposals in
relation to the salary issue which included an increase upwards of
certain salary scales including the M.V. "Bison" (details supplied
to the Court). This was rejected by the Union which claimed that
there should be a total salary review. The Union also stated that
the car ferry salary scales should be applied to officers on the
M.V. "Bison" (RO/RO freight rates presently apply) as a minimum
prerequisite for the introduction of time charters. A further
proposal by the Company that the Union withdraw its objection to
short-term time charters and that the salary issue be referred for
examination by a Tribunal as provided in the agreed Company/Union
procedures was also rejected by the Union. As agreement between
the parties could not be reached the matter was referred back to
the Labour Court and a further Court hearing was held on 24th
January, 1991. The Company's position was that its proposals at
conciliation should be accepted and it could not apply the car
ferry rates to the M.V. "Bison" as it could not apply extra costs
to the M.V. "Bison," it would be in breach of the Company/Union
Group pay agreement, and there would be serious repercussive
effects. The Union's position was that it would allow a time
charter for a period of up to 30 days for annual dry docking (this
period was later extended to 35 days for the Munster and Leinster
and 21 days for the Copax ship), on the basis that management
would agree to the application of car ferry rates to the M.V.
"Bison." Further, that in the light of the salary anomalies it
would be necessary to appoint an assessor to look at the marine
officer's rates. This assessor would report back to the
Industrial Relations Officer and a conciliation conference would
be held at which the assessor's report would be made available to
both sides for negotiation purposes. There would also be a
mechanism for referring the matter back to the Court after a two
month period in the event that no agreement was reached. A letter
recommendation was issued on 25th January, 1991 and a
clarification on 31st January, 1991 (see Appendix A).
UNION'S ARGUMENTS:
5. 1. The workers have consistently opposed the hiring of
foreign crews to man ships on Irish sea routes. However, this
issue would not be before the Court if L.C.R. No. 12975 had
been adhered to by the Company. The experience in recent
years with the M.V. "Viking," M.V. "Oleander" and M.V.
"Gunilla" should have encouraged management to deal positively
with outstanding issues but the practice of dealing with
problems at the last possible moment is a habit management
could not break. The Labour Court recommendation on the M.V.
"Gunilla" was issued almost five months ago and management
knew at least six months ago that the M.V. "Leinster" would go
into dry dock for annual overhaul in January/February, 1991.
It seems incredible to the Union that management has not
learnt the lessons of previous problems and dealt with the
outstanding issues.
2. The Union could not expect the workers to agree to
jettison a principled position on time charters which would
not carry with it immediate financial benefit to all the
workers. The Union is quite prepared to consider time
charters in the context that outstanding issues are
considered. The M.V. "Bison" is now classified as a ferry,
therefore management should agree to the application of the
ferry salary rates. The Union would then be prepared to agree
to short term time charter ships for the dry dock period and
the outstanding salary review claim would meanwhile be dealt
with.
COMPANY'S ARGUMENTS:
6. 1. Although short-term bare boat charters are impossible to
obtain the Union has in recent years opposed the use of time
charter ships. The short-term charter of time charter relief
vessels for dry dock is a long established practice in both
this Company and the shipping industry generally, and is
necessary to maintain normal commercial operations. If the
Company is not in a position to agree short-term time charters
then the Company's future and the future of all its employees
would be seriously jeopardised. During dry dock all officers
continue to be employed and there is no loss of employment or
benefits to officers when time charter ships are taken on.
2. The Company had been endeavouring to deal with the
anomalies of salary and seniority as recommended by the Court
in L.C.R. No. 12975, within the constraints of the Company
Survival Plan and the Company/Union Group Pay Agreement
(details supplied to the Court). This is demonstrated by the
resolution of one of the anomalies (i.e. seniority) and
ongoing discussion on the other. The Union was advised early
in December, 1990 that the Company wished to bring in a time
charter ship to replace its car ferries during their overhaul
in February, 1991. However, the Union stated that its
agreement depended on the application of car ferry salaries to
officers on the RO/RO freight ship. This was not acceptable
to the Company as to concede this claim would be to take out
of context one aspect of the salary structure review which can
only take place within the terms and procedures contained in
the Company/Union Group pay agreement. The anomalies
mentioned in L.C.R. No. 12975 are being dealt with and by
refusing to withdraw its objections to short term time
charters the Union is not complying with L.C.R. No. 12975.
3. The Union's demand of full concession of the car ferry
salary scales to the M.V. "Bison" officers as a prerequisite
to the introduction of time charters would represent a range
of salary increases of between 7% and 20% for individual
officers. The M.V. "Bison" cannot bear additional costs to
the service, particularly as the introduction of this Copax
ship under the survival plan was designed to reduce costs in
order to make the Company competitive. In addition,
concession of this claim would have serious repercussive
effects throughout the Company and would be in breach of the
Company/Union Group Pay Agreement.
RECOMMENDATION:
7. The Court, having considered the submissions in this case and
having regard to the urgency of the time charter situation
recommends as follows:
(a) The Union withdraw its objection to time charter on the
basis they proposed to the Court.
i.e. 35 days p.a. for the Munster and Leinster
21 days p.a. for the Copax ship and any
extension of time to be sympathetically
considered by the Union.
(b) The Company agree to upgrade the M.V. Bison as claimed by
the Union and implement in accordance with the
Union/Company Pay Agreement dated November, 1989.
(c) Both parties agree to the appointment of an assessor or
tribunal to examine and report on the outstanding Union
claims, the financing of same (including the upgrading of
the M.V. Bison) within the terms of the agreed 5 year
viability plan.
The assessor to report back to the I.R.O. and failing agreement at
that level to refer further to the Labour Court.
The Court so recommends.
~
Signed on behalf of the Labour Court
Evelyn Owens
_______________________
1st March, 1991 Deputy Chairman.
U.M./J.C.
APPENDIX A
COURT'S CLARIFICATION OF 31ST JANUARY, 1991.
Your letter of 30th January refers. The Company's interpretation
of the recommendation is correct, i.e. the implementation of the
regrading of the M.V. Bison is to take effect from the dates set
out at (3) of the clarification agreed between the Company and the
Union Group under the auspices of the Irish Congress of Trade
Unions on 9th October, 1989 which formed part of the Company's
submission to the Court.