Labour Court Database __________________________________________________________________________________ File Number: CD93205 Case Number: LCR14078 Section / Act: S26(1) Parties: IRISH LIFE BUILDING SOCIETY (I.L.B.S.) - and - MANUFACTURING SCIENCE FINANCE |
Dispute concerning a range of issues related to the imminent merger of the Irish Life Building Society and the First National Building Society (F.N.B.S.).
Recommendation:
11. The Court has considered the submissions made by the parties
and recommends on the various matters before it as follows:
Assimilation :
It appears to the Court that two issues arise out of the
matter of the transfer of staff from one payment system to the
other.
Insofar as the Bx scale in FNBS applies to a very wide range
of jobs and responsibilities, whilst, in ILBS, additional
duties were dealt with by way of promotion to supervisory
grade or by granting additional increments, these issues are
(a) the future relativity of ILBS staff with FNBS
colleagues doing the same or equivalent work,
and
(b) the apparent loss of status of those ILBS staff
transferred to the Bx scale who hitherto were in
receipt of additional payments.
As regards (a), it appears to the Court that it would be best
for all concerned to avoid, what would seem from the
employer's proposal to be a period of prolonged disadvantage
for former ILBS staff, if the single principle of service
modified as regards satisfactory service, is not applied to
them within a reasonable period after assimilation. The Court
therefore recommends that ILBS staff be placed on the FNBS
scale at the same level as if all previous service was with
FNBS.
As to the question (b) relating to loss of status, to further
ensure the elimination of as many differences as possible
between ILBS and FNBS staff, the Court recommends that
additional increments presently payable to ILBS staff should
be eliminated prior to the transfer, and that compensation be
paid to these staff at the rate of 3 times the annual benefit
they enjoyed from such payments.
The Court also recommends that the same principle should apply
to ILBS staff now classified as supervisors who should
similarly be compensated on incorporation into the FNBS
structure.
All above should apply subject to Management's undertaking
that no loss will ensue to individuals.
Branch Managers :
The Court also recommends that Branch Managers be assimilated
onto the FNBS scale with full recognition of service with
ILBS.
Pension :
The Court recommends that the ILBS offer be accepted.
Business Development Manager (Car) :
The Court also recommends that the ILBS offer in this respect
be accepted.
Division: Mr O'Connell Mr Keogh Mr Rorke
Text of Document__________________________________________________________________
CD93205 RECOMMENDATION NO. LCR14078
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: IRISH LIFE BUILDING SOCIETY (I.L.B.S.)
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION)
and
MANUFACTURING SCIENCE FINANCE
SUBJECT:
1. Dispute concerning a range of issues related to the imminent
merger of the Irish Life Building Society and the First National
Building Society (F.N.B.S.).
BACKGROUND:
2. Since November, 1992, negotiations have been on-going between
the Company and the Union in connection with the merger of the
I.N.B.S with the F.N.B.S. The issues in dispute are as follows:
1. Assimilation of Staff
The Company proposes to place I.L.B.S. staff on the next
point of F.N.B.S. pay scale above their current I.L.B.S.
rate. The Union requires that I.L.B.S. staff should be
placed in the same position on F.N.B.S. pay scales as
F.N.B.S. staff with equivalent service.
2. Pension Arrangements
Up to 1991, the F.N.B.S. operated a non-contributory
pension scheme. The scheme was then closed and a 50/50
contributory scheme was provided for staff subsequently
recruited. The Union claim that I.L.B.S. staff recruited
prior to 1991 should have access to the F.N.B.S.
non-contributory scheme. The Company have rejected the
claim on the grounds that the F.N.B.S. non-contributory
scheme is closed and that the I.L.B.S. staff can continue
their existing scheme which is superior to the F.N.B.S.
50/50 scheme.
3. Grading of Supervisors
The Company proposes that the nine supervisors in
I.L.B.S. will be assigned to specific administrative
roles and assimilated onto the nearest equivalent salary
to their existing salary, on the F.N.B.S. scale Bx,
without loss. The Union argues that the I.L.B.S.
supervisors should be deployed as supervisors in F.N.B.S.
The Company rejects this claim on the grounds that, given
the structure in F.N.B.S., it is not possible to create
supervisory posts to accommodate the I.L.B.S.
supervisors.
4. Business Development Managers / Cars issue
Of the 6 Branch Managers in I.L.B.S., 4 will be given
Branch Managership (including use of a car) in F.N.B.S.
The remaining two will be appointed as Business
Development Managers (without use of a car), with a
mileage allowance of 49p/mile. The situation regarding
cars for these posts will be reviewed in 12 months. The
Union is seeking Company cars for all managers. The
Company has rejected the Union's claim.
The dispute was referred to the Labour Relations Commission and
conciliation conferences were held on the 24th of February, 1993
and on the 12th of March, 1993 at which agreement was not reached.
The dispute was referred to the Labour Court on the 25th March,
1993 in accordance with Section 26(1) of the Industrial Relations
Act, 1990.
The Court investigated the dispute on the 8th of April, 1993.
UNION'S AND COMPANY'S ARGUMENTS.
ASSIMILATION OF STAFF
Union's arguments:
3. 1. The status of I.L.B.S. staff is reflected by their current
grade and point on I.L.B.S. scales. In order to maintain
their current status and seniority relative to one another,
and to achieve equality with their counterparts in F.N.B.S. it
is necessary to translate I.L.B.S. grades and salary points on
the basis of the F.N.B.S. scales, i.e. years of service
(details supplied to the Court).
Company's arguments:
4. 1. F.N.B.S. scales are substantially higher than I.L.B.S.
scales and all I.L.B.S. staff will benefit accordingly. The
method of assimilation of I.L.B.S. staff is equitable. To
assimilate I.L.B.S. staff on the basis of the Union's claim
would result in very large salary increases for some staff
(details supplied to the Court).
PENSION ARRANGEMENTS
Union's arguments:
5. 1. I.L.B.S. staff contribute between 3% and 6% of their gross
salaries to their pension scheme. This will lead to a
significant income differential between them and their
F.N.B.S. counterparts (who are members of a non-contributory
scheme).
Company's arguments:
6. 1. The F.N.B.S. non-contributory scheme has been closed since
August, 1991 and for reasons of strategic cost control the
Company is not prepared to re-open the scheme.
GRADING OF SUPERVISORS
Union's arguments:
7. 1. F.N.B.S. grade Bx is reached by automatic progression
after 7 years' satisfactory service. The management offer
would constitute a serious reduction in the status of
seniority of I.L.B.S. grade 3 staff. It gives no
consideration to the promotions achieved or to the enhanced
responsibilities and authority of the grade in the I.L.B.S.
(details supplied to the Court).
Company's arguments:
8. 1. I.L.B.S. supervisors will be assimilated onto the F.N.B.S.
Senior Administrative scale Bx at the nearest equivalent
salary to their existing salaries. Thereafter they will
progress to the top of the scale, which is currently well in
excess of their present maximum. They will also avail of an
improved benefits package.
BUSINESS DEVELOPMENT MANAGERS
Union's arguments:
9. 1. The total value of the remuneration package for the two
Business Development Managers should not differ from that of
the 4 former I.L.B.S. Branch Managers, who will retain their
position as full-time Branch Managers. The Business
Development Managers should be provided with a car, or an
appropriate payment to enable them to upgrade their existing
private vehicle.
Company's arguments:
10. 1. F.N.B.S. created the two positions of Business Development
Manager in order to accommodate the 2 former I.L.B.S. Branch
Managers, who, due to the closure of I.L.B.S. branches, will
remain without a branch to manage. The positions do not
include the use of a car. Payment will be made towards the
cost of insurance and motor tax and business mileage will be
reimbursed. The individuals concerned do not have a car in
their present roles as I.L.B.S. Branch managers.
RECOMMENDATION:
11. The Court has considered the submissions made by the parties
and recommends on the various matters before it as follows:
Assimilation :
It appears to the Court that two issues arise out of the
matter of the transfer of staff from one payment system to the
other.
Insofar as the Bx scale in FNBS applies to a very wide range
of jobs and responsibilities, whilst, in ILBS, additional
duties were dealt with by way of promotion to supervisory
grade or by granting additional increments, these issues are
(a) the future relativity of ILBS staff with FNBS
colleagues doing the same or equivalent work,
and
(b) the apparent loss of status of those ILBS staff
transferred to the Bx scale who hitherto were in
receipt of additional payments.
As regards (a), it appears to the Court that it would be best
for all concerned to avoid, what would seem from the
employer's proposal to be a period of prolonged disadvantage
for former ILBS staff, if the single principle of service
modified as regards satisfactory service, is not applied to
them within a reasonable period after assimilation. The Court
therefore recommends that ILBS staff be placed on the FNBS
scale at the same level as if all previous service was with
FNBS.
As to the question (b) relating to loss of status, to further
ensure the elimination of as many differences as possible
between ILBS and FNBS staff, the Court recommends that
additional increments presently payable to ILBS staff should
be eliminated prior to the transfer, and that compensation be
paid to these staff at the rate of 3 times the annual benefit
they enjoyed from such payments.
The Court also recommends that the same principle should apply
to ILBS staff now classified as supervisors who should
similarly be compensated on incorporation into the FNBS
structure.
All above should apply subject to Management's undertaking
that no loss will ensue to individuals.
Branch Managers :
The Court also recommends that Branch Managers be assimilated
onto the FNBS scale with full recognition of service with
ILBS.
Pension :
The Court recommends that the ILBS offer be accepted.
Business Development Manager (Car) :
The Court also recommends that the ILBS offer in this respect
be accepted.
~
Signed on behalf of the Labour Court
John O'Connell
____________________
11th May, 1993. Deputy Chairman
M.K./J.C.
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Michael Keegan, Court Secretary.