Labour Court Database __________________________________________________________________________________ File Number: CD93517 Case Number: LCR14313 Section / Act: S26(1) Parties: GREAT SOUTHERN HOTELS - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning: (i) The provision of pension entitlements for regular seasonal employees; (ii) Triple-time for Christmas Day and St. Stephen's Day.
Recommendation:
The Court, having considered all of the views expressed by the
parties in their oral and written submissions, recommends as
follows:
1. PENSIONS
That the parties negotiate on this issue with a view to
including the regular seasonal staff in the Pension
Scheme; these negotiations to take account of the cost-
implications and the capacity of the Group to absorb the
costs involved;
2. PREMIUM FOR CHRISTMAS DAY AND ST. STEPHEN'S DAY
The Court considers that there is some merit in the
claim of the Union. However it is a cost-increasing
claim and, therefore, is barred under the terms of
P.E.S.P.
The Court notes that the P.E.S.P. expires in October,
1994, and accordingly, recommends that the parties
further discuss the claim on the expiry of the P.E.S.P.,
with a view to agreeing arrangements to apply for the
Christmas holiday 1994.
Division: MrMcGrath Mr Brennan Mr Rorke
Text of Document__________________________________________________________________
CD93517 RECOMMENDATION NO. LCR14313
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: GREAT SOUTHERN HOTELS
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning:
(i) The provision of pension entitlements for regular
seasonal employees;
(ii) Triple-time for Christmas Day and St. Stephen's Day.
BACKGROUND:
2. The Company operates 7 hotels throughout Ireland and employs
4 categories of staff - permanent, regular seasonal, part-time
and casual. Excepting the absence of a pension scheme, regular
seasonal staff have the same rates of pay and conditions as
permanent staff, for the periods during which they are employed.
After two full seasons of employment, regular seasonal staff have
the "right to recall" in subsequent seasons. The Union claims
that the seasonal workers have the right to participate in a
contributory pension scheme. The Company's position is that due
to historic and current competitive difficulties it could not
absorb the costs of the scheme. The Union is also seeking the
payment of triple-time for staff working Christmas and St.
Stephen's Days. The Company have rejected the claim on the
grounds that they would have to close the hotels in October,
rather than remaining open for Christmas trade. The Company also
maintain that, as the claim is cost-increasing, it is precluded
under the Programme for Economic and Social Progress.
The dispute was referred to the Labour Relations Commission and a
conciliation conference was held on the 29th of June, 1993, at
which agreement was not reached. The dispute was referred to the
Labour Court on the 13th of September, 1993, in accordance with
section 26(1) of the Industrial Relations Act, 1990. The Court
investigated the dispute on the 24th of November, 1993.
UNION'S ARGUMENTS:
3. PENSION ENTITLEMENTS:
1. In the P.E.S.P., provision is made for the introduction
of pension benefits for categories of workers, for whom no
provision already exists. The regular seasonal workers are
such a category.
2. The Company indicated, on the 29th of June, 1993, that
it was its inability to recoup the costs which would be
incurred, which forced it to reject the claim. The Union is
prepared to enter into negotiations on a phased
implementation of the extension of the pension scheme.
3. It is an unacceptable situation that an enterprise in
Irish public ownership should run an operation in which over
300 of its employees are deprived of the opportunity to
contribute towards a pension for their old age.
4. Participation in a contributory pension scheme is a
right, recognised by the social partners, not a privilege.
TRIPLE-TIME FOR CHRISTMAS AND ST. STEPHEN'S DAYS:
1. There is a view within industry in general and within
segments of the hotel industry, that the requirement to work
on public holidays is additionally anti-social. The claim is
in respect of the working of the two public holidays which
staff regard as the most anti-social.
2. Should the Union wait for the expiry of the P.E.S.P. to
lodge this claim, it would be unlikely for a successful claim
to be implemented before Christmas, 1996. The concession of
the present claim would not mean the implementation of the
triple-time premium until Christmas, 1994, after the expiry
of the P.E.S.P. in the Great Southern Hotel Group.
COMPANY'S ARGUMENTS:
4. 1. Both claims are cost-increasing and are, therefore,
precluded under Clause 5 of the P.E.S.P.
2. To concede further cost-increasing claims would further
undermine the Company's competitive position. It is already
unable to compete effectively for function-business because
its cost-base is high when compared with other local
operators. Competition for the Company comes from every bar,
restaurant and B+B operating in its catchment areas - all of
which are non-unionised.
3. The Company also has to compete with the unionised
sector where new multi-functional, non-demarcation,
agreements are now in place.
4. The Company is committed to improving workers' terms and
conditions, as trading circumstances allow (details supplied
to the Court).
5. Current trading conditions are such that it would be
irresponsible of the Company to concede the claims if a
return to the situation which prevailed in the early 1980s,
is to be avoided (details supplied).
6. The triple-time claim is inappropriate in the context of
the Great Southern Hotels Group. The viability of the
hotels, in November and December (already a loss-making
period in all locations) is dependent on successful
Christmas-period trading. To concede the claim would
necessitate a review of the Company's policy of extending the
season and could lead to the closure of one of the two Galway
Hotels, in addition to the earlier closure of the seasonal
hotels.
RECOMMENDATION:
The Court, having considered all of the views expressed by the
parties in their oral and written submissions, recommends as
follows:
1. PENSIONS
That the parties negotiate on this issue with a view to
including the regular seasonal staff in the Pension
Scheme; these negotiations to take account of the cost-
implications and the capacity of the Group to absorb the
costs involved;
2. PREMIUM FOR CHRISTMAS DAY AND ST. STEPHEN'S DAY
The Court considers that there is some merit in the
claim of the Union. However it is a cost-increasing
claim and, therefore, is barred under the terms of
P.E.S.P.
The Court notes that the P.E.S.P. expires in October,
1994, and accordingly, recommends that the parties
further discuss the claim on the expiry of the P.E.S.P.,
with a view to agreeing arrangements to apply for the
Christmas holiday 1994.
~
Signed on behalf of the Labour Court
23rd December, 1993. Tom McGrath
M.K./A.L. ---------------
Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to
Mr. Michael Keegan, Court Secretary.