Labour Court Database __________________________________________________________________________________ File Number: CD93192 Case Number: LCR14190 Section / Act: S26(1) Parties: NATIONAL IRISH INVESTMENT BANK - and - IRISH BANK OFFICIALS ASSOCIATION |
Dispute concerning the rationalisation of the sales force.
Recommendation:
5. The Court having fully considered all of the issues raised by
the parties in their oral and written submissions recommends that
the proposals of the bank be accepted with the following
amendments.
1. That the staff who secure appointments as Branch
Marketing Official be assimilated at the maximum of
the Senior Bank Official grade.
2. Discussions in relation to location and nature of
job/task assignment in accordance with Clause 3 of the
Company proposals be completed within 4 weeks of the
issue of this recommendation.
3. Company car purchase to be made available at 70% of
current market value (i.e. The Salesman Guide price less
#1000).
4. The Voluntary Severance Scheme to continue to be
available to end December, 1993.
The Court recommends the above in full and final settlement of the
agreement.
Division: MrMcGrath Mr Brennan Mr Walsh
Text of Document__________________________________________________________________
CD93192 RECOMMENDATION NO. LCR14190
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1) INDUSTRIAL RELATIONS ACT, 1990
PARTIES: NATIONAL IRISH INVESTMENT BANK
AND
IRISH BANK OFFICIALS ASSOCIATION
SUBJECT:
1. Dispute concerning the rationalisation of the sales force.
BACKGROUND:
2. 1. National Irish Investment Bank was formerly called
Northern Bank Finance Corporation. In 1986, Northern Bank
Finance Corporation absorbed the business of Forward Trust
(Ireland) Ltd. In 1987, the Northern Bank Group was taken
over by the National Australia Bank and the name was changed
to National Irish Investment Bank.
2. The Bank employed a sales force which was involved
exclusively in the sale of asset finance products. In
September, 1990, it was decided, due to poor performance, to
switch to the sale of a full range of retail bank products.
The sales force began selling the new product range in March,
1991 and the situation was closely monitored. In May/June,
following an internal analysis, a decision was made to
disband the sales force with effect from the 26th August,
1992.
3. Severance terms offered to the workers were rejected and
the matter was referred to the Labour Relations Commission.
Conciliation conferences took place on the 6th November, 1992
and the 6th December, 1992. A set of proposals put forward
at conciliation was rejected by the Association. The matter
was referred to the Labour Court on the 23rd March, 1993 and
the Court investigated the issue on the 16th April, 1993.
ASSOCIATION'S ARGUMENTS:
3. 1. Grounds do not exist to justify a redundancy situation.
2. Sufficient capacity/potential exists to redeploy the
workers on their current terms and conditions of employment.
3. The Bank has reneged on its commitments under a job
security agreement entered into in 1991.
4. The treatment of the sales force employees ignores the
precedent created by previous rationalisation.
5. A considerable level of sales and collections expertise
exists among the workers.
6. Sales staff have been involved in collection work since
August, 1992 and in some cases before this date.
7. The four field debt collection posts proposed have a
limited time span.
COMPANY'S ARGUMENTS:
4. 1. The income generated from the sale of retail bank
products did not cover the cost of the operation.
2. The sales process required to sell these products was
different from that required to sell instalment finance type
products.
3. The separate staff structure for sales, with separate
reporting lines and accountabilities outside the retail
branch network, was dysfunctional in many respects.
4. Four field-debt-collection posts in National Irish
Investment Bank will be available to selected sales force
staff on the basis of their existing terms and conditions of
employment within National Irish Investment Bank.
5. Application for the position of Branch Marketing
Official is open to the sales representative staff in
National Irish Investment Bank.
RECOMMENDATION:
5. The Court having fully considered all of the issues raised by
the parties in their oral and written submissions recommends that
the proposals of the bank be accepted with the following
amendments.
1. That the staff who secure appointments as Branch
Marketing Official be assimilated at the maximum of
the Senior Bank Official grade.
2. Discussions in relation to location and nature of
job/task assignment in accordance with Clause 3 of the
Company proposals be completed within 4 weeks of the
issue of this recommendation.
3. Company car purchase to be made available at 70% of
current market value (i.e. The Salesman Guide price less
#1000).
4. The Voluntary Severance Scheme to continue to be
available to end December, 1993.
The Court recommends the above in full and final settlement of the
agreement.
~
Signed on behalf of the Labour Court
Tom McGrath
28th September, 1993 ____________________________________
P.O.C./J.C.
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Paul O'Connor, Court Secretary.