Labour Court Database __________________________________________________________________________________ File Number: CD93166 Case Number: LCR14028 Section / Act: S26(1) Parties: DUBLIN AIRPORT RESTAURANT - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning the rates of pay for a new operation.
Recommendation:
5. In the light of the submissions made by the parties at the
hearing the Court recommends that they meet and directly negotiate
a modified rate to be applicable to new staff for a period of one
year, after which date the rate would be reviewed in the light of
the trading results of the new franchise.
Division: Mr O'Connell Mr Keogh Mr O'Murchu
Text of Document__________________________________________________________________
CD93166 RECOMMENDATION NO. LCR14028
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: DUBLIN AIRPORT RESTAURANT
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning the rates of pay for a new operation.
BACKGROUND:
2. The Company is a subsidiary of S.A.S. International Limited
which controls the operation of restaurants/bar facilities in a
number of airports worldwide. S.A.S. International Limited agreed
with Burger King to open a chain of franchise fast-food outlets in
a number of airports, of which Dublin Airport will be the pilot
operation. This necessitated the changing of the existing Failte
restaurant to a Burger King outlet. The new outlet opened on the
17th of March, 1993.
Current rates of pay in the Company are as follows:
Permanent staff - #3.59/hour (+10% shift premium)
Part-time/casual staff - #3.04/hour (+10% shift premium)
Staff in the Failte bar transferring to Burger King as permanent
staff have been offered the following rates:
Current permanent - #3.59/hour (+10% shift premium)
Current Part-time - #3.04/hour rising to #3.59/hour
over 5 years.
The staff complement required is 35, 20 full-time and 15
part-time. To date 13 posts have been filled, leaving a further
22 posts (7 permanent and 15 part-time) to be filled.
The Company proposes to pay a rate of #2.50 per hour for these
posts, stating that a higher rate would render the operation
uneconomic. The Union does not accept that the Company cannot
afford to pay a higher rate. The dispute was referred to the
Labour Relations Commission and a conciliation conference was held
on the 24th of February, 1993 at which agreement was not reached.
The dispute was referred to the Labour Court on the 9th March,
1993 in accordance with Section 26(1) of the Industrial Relations
Act, 1990. The Court investigated the dispute on the 23rd of
March, 1993.
UNION'S ARGUMENTS:
3. 1. The Company is profitable and can afford to pay a higher
rate of pay. In 1992, the Failte Restaurant had a profit of
13% on a turnover of #688,000. It is expected that the Burger
King restaurant will show even greater returns.
2. The proposed rate of #2.50 per hour is unacceptable as it
is not in keeping with current agreed rates of #3.59 (+10%
shift premium) for permanent staff, and #3.04 (+10%) for
temporary staff. The proposed rate of #2.50 per hour is in
contravention of the statutory minimum wage laid down by the
Catering Joint Labour Committee, i.e. #3.13 per hour for the
first year and #3.47 per hour for subsequent years.
COMPANY'S ARGUMENTS:
4. 1. The rate of #2.50 per hour is a standard rate for
fast-food outlets. Similar outlets in Dublin pay a rate of
#2.50 per hour. Under the franchise agreement the Company
cannot charge more for its products than its direct
competitors.
2. The new outlet has resulted in 22 extra jobs, promotional
opportunities for existing staff and security of tenure with
improved rates of pay for temporary/casual staff. Staff who
did not wish to move to the new outlet have been facilitated
elsewhere. Given these concessions, it is regrettable that a
rate of pay reflecting commercial realities cannot be agreed.
RECOMMENDATION:
5. In the light of the submissions made by the parties at the
hearing the Court recommends that they meet and directly negotiate
a modified rate to be applicable to new staff for a period of one
year, after which date the rate would be reviewed in the light of
the trading results of the new franchise.
~
Signed on behalf of the Labour Court
John O'Connell
___________________
6th April, 1993. Deputy Chairman
M.K./J.C.
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Michael Keegan, Court Secretary.