Labour Court Database __________________________________________________________________________________ File Number: CD93471 Case Number: LCR14228 Section / Act: S26(1) Parties: AER TURAS LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Claim by the Union on behalf of nine (9) workers for payment of the increase due under Phase 3 of the Programme for Economic and Social Progress (P.E.S.P.).
Recommendation:
5. Having considered the submissions from the parties the Court
recommends.
(a) That the Company accept the claimants' entitlement to
phase 3 of P.E.S.P. from 1st January, 1993,
and
(b) the Union agree that payment be postponed at present and
the parties meet to review the position in April, 1994.
Division: Ms Owens Mr Brennan Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD93471 RECOMMENDATION NO. LCR14228
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: AER TURAS LIMITED
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Claim by the Union on behalf of nine (9) workers for payment
of the increase due under Phase 3 of the Programme for Economic
and Social Progress (P.E.S.P.).
BACKGROUND:
2. The Company is a subsidiary of Aer Lingus and currently
operates three cargo aircraft. On the 7th January, 1993 the Union
wrote to the Company claiming payment of the 3% increase under
Phase 3 of the P.E.S.P. with effect the from 1st January, 1993.
The Company pleaded inability to pay the increase at local level
discussions held on the 20th January, 1993 and the dispute was
referred to the Labour Relations Commission. A conciliation
conference was held on the 27th April, 1993 but no agreement was
reached. The dispute was referred to the Labour Court on the 11th
August, 1993 in accordance with Section 26(1) of the Industrial
Relations Act, 1990. The Court investigated the dispute on the
12th October, 1993.
UNION'S ARGUMENTS:
3. 1. The Company agreed to pay all phases of the P.E.S.P. on
the due dates at a Labour Court hearing in October, 1991. The
terms of P.E.S.P. were negotiated at national level and agreed
by both trade unions and employer organisations. Under the
terms of that agreement companies are obliged to pay all
phases. Aer Lingus has agreed to pay its workers the three
phases of P.E.S.P and subsidiaries of that Company have paid
the increases as negotiated.
2. Aer Turas made a nett profit in the year ending 31st
March, 1992 and is in a position to pay the increase to the
workers concerned.
COMPANY'S ARGUMENTS:
4. 1. The Company sustained a substantial trading loss for the
year ended 31st March, 1993, and there is a downturn in trade
for the current year to date (details supplied to the Court).
2. The Company's third aircraft is surplus to requirements
but efforts to sell or lease that aircraft have not been
successful to date due to the recessionary climate in the
airline industry.
3. The Company is committed to pay the increase but cannot do
so until the third aircraft is leased or sold and the current
trading position improves.
RECOMMENDATION:
5. Having considered the submissions from the parties the Court
recommends.
(a) That the Company accept the claimants' entitlement to
phase 3 of P.E.S.P. from 1st January, 1993,
and
(b) the Union agree that payment be postponed at present and
the parties meet to review the position in April, 1994.
~
Signed on behalf of the Labour Court
Evelyn Owens
____________________
20th October, 1993. Deputy Chairman.
T.O'D./J.C.
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Tom O'Dea, Court Secretary.