Labour Court Database __________________________________________________________________________________ File Number: CD91403 Case Number: LCR13417 Section / Act: S26(1) Parties: WATERFORD REGIONAL AIRPORT P.L.C. - and - AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION |
Claim by the Union on behalf of 4 ground support staff and 2 operations officers concerning pay, shift allowance and Christmas bonus.
Recommendation:
5. Having considered the submissions from both parties the Court
recommends as follows in relation to the three items in dispute.
(1) Pay - Application of P.E.S.P.
The Court recommends that Phase I of P.E.S.P. be applied from
1/9/91: the 2nd phase from 1/4/92 and third phase on 1/4/93.
Payment of 4% in respect of period 1/4/91 to 31/8/91 (based on
the rates applicable on 31/3/91) to be paid at the
commencement of Phase 3 i.e. 1/4/93.
(2) Shift Allowance
The Court recommends concession of the Union's claim that a
shift premium of 1/6th be paid in lieu of present allowance of
£12 from date of this recommendation.
(3) Christmas Bonus
The Court does not recommend concession of the claim.
Division: Ms Owens Mr Brennan Mr Devine
Text of Document__________________________________________________________________
CD91403 RECOMMENDATION NO. LCR13417
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: WATERFORD REGIONAL AIRPORT P.L.C.
(REPRESENTED BY BRIAN FLYNN AND ASSOCIATES)
and
AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim by the Union on behalf of 4 ground support staff and 2
operations officers concerning pay, shift allowance and Christmas
bonus.
BACKGROUND:
2. The Company has operated the Waterford Regional Airport since
August, 1990. Prior to that time the staff were employed by
Waterford Airport Limited. In May, 1990, the Union submitted a
claim for pay and conditions to the Company then operating the
airport. This claim was re-submitted following the workers
transferring their employment to the new Company i.e. Waterford
Regional Airport p.l.c. The claim submitted was as follows:
(a) Increase in pay of ground support staff from £150 to £190
per week.
(b) Increase in operations officers' pay from £184 to £250
per week.
(c) Shift allowance of 1/6th.
(d) Mileage allowance.
(e) Eating-on-site allowance or provision of canteen
facilities.
(f) Pension plan.
(g) Death-in-service benefit.
(h) Christmas bonus of 2 weeks' pay.
(i) Paid time-off for industrial relations education.
(j) Union recognition and procedural agreement.
(k) Employment of outsick labour and extra staff.
(l) A written agreement regarding the future of a particular
individual.
Attempts by both the Union and the Labour Relations Commission to
arrange a meeting to discuss the Union's claim proved unsuccessful
and on 10th July, 1991, the Union served notice on the Company of
its intention to commence industrial action from 29th July, 1991.
In the light of the imminent strike the Labour Relations
Commission, on 19th July, 1991, formally invited the parties to
attend conciliation conferences on 25th and 26th July, 1991.
During the course of the conciliation conferences a number of the
issues were resolved and the Company also agreed to pay a once-off
payment of £275 to each worker in lieu of the non-payment of the
P.N.R. and as a lead-in payment. The issues remaining to be
solved were:
(a) Modified pay claim of payment of phase 1 of the P.E.S.P.
from 1st April, 1991, with the claim for the £190 and
£250 basic pay being shelved till 1992.
(b) Shift premium of 1/6th.
(c) Christmas bonus of 2 weeks' pay.
As agreement could not be reached on the remaining matters, the
Labour Relations Commission referred the matter to the Labour
Court on 6th August, 1991, under Section 26(1) of the Industrial
Relations Act, 1990. The Court investigated the matter on 20th
August, 1991, in Waterford.
UNION'S ARGUMENTS:
3. 1. In the Waterford locality the average rate for general
operatives is in the range of £180 - £200 in the private
sector and about £180 in the public sector. The workers in
Waterford Regional Airport are out of line with the local
norm. They are also out of line with equivalent grades in
Connaught Airport (details provided). Against this background
the Union claims that phase 1 of the P.E.S.P. should be paid
from April, 1991.
2. Presently a shift premium of £12 per week is paid. This
bears no relationship to shift premia normally applying to
2-shift working (details of shift premia in other employments
provided). The Union claims that a shift premium of 1/6th
should be paid.
3. The payment of a 2 week Christmas bonus is appropriate at
this point in time as a merit award for the extraordinary and
unique co-operation given by the workers in getting the
operation up and running. Such a bonus would be in
recognition of the good work being done and would be
corner-stoned as recognition. Practices such as bonus
payments are in place in most good employments.
COMPANY'S ARGUMENTS:
4. 1. The wages of the workers concerned have increased
considerably over the last few years. In April, 1989, in
recognition of the experience gained by the staff and some
growth in business, wages were increased by 35%. In December,
1989, the higher grade of operations officer was created,
resulting in 4 staff being given a further increase of 12%.
In April, 1990, a 4% increase was given to ground support
staff and 6.6% to operations officers. Finally, in August,
1990, all staff, on transferring their employment to the
Company from Waterford Airport Limited, received further
increases ranging from 7.1% to 9.3%.
2. Wages constitute 50% of the Company's total operation
costs and is by for the biggest element of the Company's
outgoings. At present total salaries exceed total income for
the 9 month period to June, 1991. Any increase in wage costs
will only exacerbate the situation.
3. Projections for the first year of operations provide for
an operating loss of close to £250,000. Currently,
shareholders funds are on deposit and interest from this has
reduced a £150,000 loss for the 9 month period to June, 1991,
to £67,000. However, these funds are to be used for capital
investment and thus the interest will not be available to
reduce operating losses.
4. The Company's main source of income is from airline
handling charges and duty free sales. There is only one
airline operating out of the airport at present and this
airline has negotiated a reduction in airport charges (details
provided). More crucially the airport has been offered 15%
fewer seats for 1991, thus reducing earning capacity from
charges in addition to duty-free sales. In addition, the
percentage of seats filled has also decreased this year. The
net effect is to hit the Company's two main sources of income,
duty-free sales and airport charges, because of the falling
number of outward bound passengers. The short term future is
not encouraging either with less seats being available per day
than heretofore.
5. The Union's claim for the shift premium only appeared in
the course of the conciliation conference at a stage when the
Company had already agreed to consolidate its existing shift
payments.
6. The majority of the Company's staff of 15 have accepted
that the Company is going through a difficult financial period
and that now is not the time to be seeking a pay increase.
These staff have accepted the need for a pay freeze.
RECOMMENDATION:
5. Having considered the submissions from both parties the Court
recommends as follows in relation to the three items in dispute.
(1) Pay - Application of P.E.S.P.
The Court recommends that Phase I of P.E.S.P. be applied from
1/9/91: the 2nd phase from 1/4/92 and third phase on 1/4/93.
Payment of 4% in respect of period 1/4/91 to 31/8/91 (based on
the rates applicable on 31/3/91) to be paid at the
commencement of Phase 3 i.e. 1/4/93.
(2) Shift Allowance
The Court recommends concession of the Union's claim that a
shift premium of 1/6th be paid in lieu of present allowance of
£12 from date of this recommendation.
(3) Christmas Bonus
The Court does not recommend concession of the claim.
~
Signed on behalf of the Labour Court
Evelyn Owens
27th September, 1991 _______________
B.O'N./J.C. Deputy Chairman.