Labour Court Database __________________________________________________________________________________ File Number: CD91580 Case Number: LCR13542 Section / Act: S26(1) Parties: AER LINGUS - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Rationalisation proposals.
Recommendation:
5. The Court has fully considered the views expressed in the oral
and written submissions of the parties and the subsequent
discussions held separately with each party.
The Court finds that the limitations being placed by the employees
here concerned on the achievement of the aims of the Company
contained in the Recovery Plan agreement are not in keeping with
the spirit and intent of that agreement.
The Court notes the parties are in agreement that the current
arrangements are outdated and require to be radically changed to
meet the requirements of to-day's air transport environment.
In the interests of meeting the requirements under the Recovery
Plan and with a view to the necessary changes being made which
will meet the needs of the employees, significally improve
efficiency performance and satisfy the requirements of the airline
to compete successfully in the current and future air transport
environment the Court makes the following recommendations.
1. That as a matter of urgency and in an agreed timescale the
parties negotiate an agreement which will provide working
arrangements acceptable to the employees, will have regard to
their working lifestyle, and which will be flexible,
responsive to customer demand and provide the improvements
necessary to a modern efficient and cost effective airline.
2. That in the context of the Recovery Plan the following changes
be implemented:
(a) The staffing level on all B747 flights be reduced by one,
the cabin supervisor to be integrated into the service
procedure.
(b) The 767 to be crewed as follows.
Atlantic (2 class) - 8
Atlantic (all economy) - 6
All Charter - 6
(c) That staff work 3rd day off - Transatlantic, 9th day off
Europe on a voluntary basis.
(d) That the check in time for all European flights be
reduced to one hour (30 minutes on board) at base.
(e) That current agreements should be amended to allow for
double London for U.K. seniors.
(f) That the parties give a commitment to the establishment
of Shannon as a base.
(g) That the meal break be of 1 hour 15 minutes duration with
30 minutes to be free of all duty.
(h) That crew on a C.S.S. round trip couple if required with
a domestic round trip (or single sector)
It shall not be contrary to the terms of this recommendation
if in the discussions recommended under 1 above the impact of
the implementation of 2 (a to h) are considered and taken into
account.
Division: MrMcGrath Mr Keogh Mr Walsh
Text of Document__________________________________________________________________
CD91580 RECOMMENDATION NO. LCR13542
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: AER LINGUS
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Rationalisation proposals.
BACKGROUND:
2. In February, 1991 the Union and the Company reached agreement
on the framework of a recovery plan. The recovery plan is
designed to equip the Company to compete successfully, to reduce
the nett loss for air transport in 1991/1992, and to provide
secure employment for its workforce. The plan is to apply to all
departments and all levels and categories of staff. The recovery
plan provided for urgent negotiations with a view to achieving
efficiency improvements. It was anticipated by both sides that
significant progress would be made. In relation to the scope for
efficiency improvements the Company made the following proposals
in respect of cabin crew workers.
TRANSATLANTIC
1. Reduction of 1 on all B747 flights with the C/S
integrated into the service procedures.
2. Sliding scales (Winter only).
3. Reduced check-in and on board times.
4. 767 crewing agreement. (8 Atlantic-2 Class, 6
Atlantic-All Economy, 6 All Charter).
5. West Coast agreement.
6. Voluntary working on 3rd Day off.
C.S.S.
1. Removal of time barriers in respect of Continental
Schedule Services (C.S.S.) flights.
2. Extension of current reserve position for C.C.M.'s to
include charter flights as well as U.K. and C.S.S.
scheduled flights.
3. C.S.S. Seniors eligible to be caught on reserve for U.K.
flights.
4. New crewing levels on Manchester sectors.
5. Check-in time of 1 hour for all flights. (30 minutes on
board).
6. Domestic coupling e.g. DUB-ORK-PAR ORK-DUB same aircraft
- different flight numbers.
7. Round trip before or after a single sector C.S.S.
overnight.
8. Voluntary working on 9th day off.
U.K.
1. A review of the agreement governing double Londons for
U.K. Seniors.
2. Eligibility for both Seniors and C.C.M.'s to be caught
from reserve from C.S.S. flights.
3. Check-in time of 1 hour for all flights. 30 minutes on
board.
4. Where a jet is substituted for a Fokker with a max of 50
passengers, 3 C.C.M. on B737-200/300 and 4 C.C.M.'s on
B737-400 with 2 class operation maintained.
5. Revised crewing levels on student and holiday charter
flights.
6. Sliding scales on London and U.K./P flights.
7. Voluntary working on 9th day off.
8. Shannon base.
MERGER
1. Removal of payment bonus day for European flights
operated during European stint.
APPLICABLE TO ALL
1. No flights on any route to go short crewed when there is
an aircraft-trained reserve available.
2. No short crewing credits to be paid unless commitment
delivering maximum service possible.
3. Payment for any Bank Holiday days not allocated during
the year in which they occur or agreement that these days
if converted to Annual Leave can be allocated rather than
requested.
4. Reduced rest periods.
5. 1 hour - 15 Meal break to be 30 minutes free of all duty.
The Union rejected the proposals and as no agreement could be
reached at local level the matter was referred to the Labour
Relations Commission. Several conciliation conferences took place
in the period July, 1991 to October, 1991 and as no agreement
could be reached the matter was referred to the Labour Court on
5th November, 1991 for investigation and recommendation. The
Court hearing took place on 22nd November, 1991. Subsequent to
the hearing of 22nd November, 1991 the Court held separate
discussions with the parties on 13th and 15th December, 1991.
COMPANY'S ARGUMENTS:
3. 1. Cabin crew working rules are contained in a comprehensive
agreement which was first negotiated in the 1960's. The
agreement and the approach to working rules that it contains
are outdated and have no place in a changing air transport
industry.
2. The agreement contains several legalistically written
clauses that govern the rostering rules for cabin crew workers
and the rules that govern the operation on the day. The rules
were negotiated and agreed with the then known schedule and
commercial requirements in mind. As the circumstances changed
over the years the rules did not. Cabin crew workers have
simply refused to modernise old rules.
3. All other groups covered by the recovery plan have entered
into agreements on improved efficiency items to some degree.
Cabin crew workers have failed to agree any efficiency
improvements.
4. A sophisticated legalistic rule book was first written
over twenty years ago and updated only with difficulty and on
an ad hoc basis in between. The net effect is that the
Company are unresponsive to commercial change, have achieved
only limited flexibility to accommodate commercial
requirements and then only on foot of severe penalties either
in terms of additional time off, reducing the average working
week or through extra payments.
5. Cabin crew are the only significant group of staff relying
on old rules in an airline which is in a precarious financial
position, operating in an industry which requires fleet-footed
response to fast radical change. The position has become
intolerable.
6. Early morning continental departures are technically
"through the night" flights. They therefore attract bonus
time off agreed in crisis negotiations against the background
that, technically, according to the old agreement no cabin
crew members could operate the flights in question. This
bonus time off represents a 50% efficiency penalty in respect
of cabin crew costs. It is essential to provide early morning
departures out of Dublin if we are to meet our customers
requirements.
7. Cabin crew operating continental schedule services will
not operate a U.K. flight in advance of a continental
overnight. This can mean that as little as two sectors
comprise two days work.
8. Cabin crew must be changed on continental flights
transiting through Dublin to Shannon, or Cork. This arises
from old demarcation and old meal-break rules, written before
the Company agreed to put special meals on board for cabin
crew.
9. Cabin supervisors have refused to be included in the
working procedures and only perform a supervisory role. Based
on a legalistic application of an old rule the Company are
carrying one cabin crew member too many on the extremely
marginal north atlantic services. There is no question that
the work involved can easily be accommodated within the time
available and this has been validated by a joint study.
10. Seniors operating U.K./Charter services cannot operate
double London flights which basic grade cabin crew do
regularly. Seniors work on average 29 hours 10 minutes per
week.
11. Transatlantic cabin crew are rostered for three days off
after every round trip. The three day rule applies regardless
of the amount of rest time provided in North America. In the
summer of 1991 one particular feature of the schedule involved
an eight day lay-over, free of duty in Chicago which was
followed by four days off in Dublin. The rules that give rise
to such anomalies clearly require review.
UNION'S ARGUMENTS:
4. 1. The terms of the recovery plan make it clear that changes
in work practices can only be implemented with the agreement
of both parties.
2. Under the "Recovery Plan" cabin crew workers have made a
substantial contribution through:-
(a) Deferral of annual salary increments due from 1st April,
1991.
(b) Deferral of increases due under P.E.S.P. from 1st July,
1991.
(c) Co-operation with the "Quality Focus" Programme.
3. Throughout the 1980's cabin crew staff have co-operated
with a number of recovery - type programmes. In 1988, cabin
crew accepted lower new intake rates of pay and working
conditions which allowed for further expansion and development
of the Company. The effect was to increase productivity and
reduce wage costs as a percentage of total costs.
4. The Company's financial situation is not all gloom and
doom. Despite an operating loss on air transport in 1990/1991
the Company made an overall profit in the year ending 31st
March, 1991.
5. A report prepared for the Union by economists confirmed
that cabin crew costs are relatively low.
RECOMMENDATION:
5. The Court has fully considered the views expressed in the oral
and written submissions of the parties and the subsequent
discussions held separately with each party.
The Court finds that the limitations being placed by the employees
here concerned on the achievement of the aims of the Company
contained in the Recovery Plan agreement are not in keeping with
the spirit and intent of that agreement.
The Court notes the parties are in agreement that the current
arrangements are outdated and require to be radically changed to
meet the requirements of to-day's air transport environment.
In the interests of meeting the requirements under the Recovery
Plan and with a view to the necessary changes being made which
will meet the needs of the employees, significally improve
efficiency performance and satisfy the requirements of the airline
to compete successfully in the current and future air transport
environment the Court makes the following recommendations.
1. That as a matter of urgency and in an agreed timescale the
parties negotiate an agreement which will provide working
arrangements acceptable to the employees, will have regard to
their working lifestyle, and which will be flexible,
responsive to customer demand and provide the improvements
necessary to a modern efficient and cost effective airline.
2. That in the context of the Recovery Plan the following changes
be implemented:
(a) The staffing level on all B747 flights be reduced by one,
the cabin supervisor to be integrated into the service
procedure.
(b) The 767 to be crewed as follows.
Atlantic (2 class) - 8
Atlantic (all economy) - 6
All Charter - 6
(c) That staff work 3rd day off - Transatlantic, 9th day off
Europe on a voluntary basis.
(d) That the check in time for all European flights be
reduced to one hour (30 minutes on board) at base.
(e) That current agreements should be amended to allow for
double London for U.K. seniors.
(f) That the parties give a commitment to the establishment
of Shannon as a base.
(g) That the meal break be of 1 hour 15 minutes duration with
30 minutes to be free of all duty.
(h) That crew on a C.S.S. round trip couple if required with
a domestic round trip (or single sector)
It shall not be contrary to the terms of this recommendation
if in the discussions recommended under 1 above the impact of
the implementation of 2 (a to h) are considered and taken into
account.
~
Signed on behalf of the Labour Court
Tom McGrath
__________________________
6th February, 1992. Deputy Chairman
F.B./J.C.