Labour Court Database __________________________________________________________________________________ File Number: CD95505 Case Number: LCR14977 Section / Act: S26(1) Parties: BORD NA MONA - and - MANUFACTURING, SCIENCE, FINANCE |
Claim for travelling expenses.
Recommendation:
There is a conflict of opinion between the parties as to the
status of the 1993 agreement. Taking into account all the
information presented, the Court recommends that the standard
mileage rate threshold be increased to 8,500 miles, with
additional miles paid at 5 pence per mile.
This in full and final settlement of the dispute.
Division: Mr Flood Mr Keogh Mr Rorke
Text of Document__________________________________________________________________
CD95505 RECOMMENDATION NO. LCR14977
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
BORD NA MONA
AND
MANUFACTURING, SCIENCE, FINANCE
SUBJECT:
1. Claim for travelling expenses.
BACKGROUND:
2. The claim by the Union is on behalf of three workers who are
employed as Environmental Control Officers/Land Valuers in
the Peat Energy Division of Bord Na Mona.
Toward the end of 1991, Bord Na Mona carried out an overhead
costs review (OCR) with the aim of reducing costs by £5.07
million. The Peat Energy Division set a cost reduction
target of £1.1 million.
Up to 1992, the three workers had authorisation to use their
own cars when on official Company business. They were paid
the standard mileage rate of approximately 54 pence per mile.
In July, 1992, a limit of £150 per month travelling allowance
was imposed on the three workers. Thereafter, the workers
were to use Company vans. This situation continued until
December, 1992. In January, 1993, a new arrangement was
agreed. The first 7,500 miles were to be paid at standard
mileage rate, with any additional mileage paid at 5 pence per
mile. This arrangement operated throughout 1993/1994. The
Bord claims that in early 1995 the three workers sought to
return to the pre-1992 payment i.e., all mileage to be paid
at standard rate.
The dispute was the subject of local level talks on 21st
March, 1995, and a conciliation conference with the Labour
Relations Commission on 7th June, 1995. No agreement was
reached and the dispute was referred to the Labour Court on
31st August, 1995, in accordance with Section 26(1) of the
Industrial Relations Act, 1990. A Labour Court hearing took
place on 3rd November, 1995.
UNION'S ARGUMENTS:
3. 1. The workers were told that they would be paid the
appropriate Public Service mileage rate when they
applied for the jobs in 1979/1980. They were informed
that they would be covering at least 12,000 miles per
annum.
2. Under the present system, the workers would receive
£4,600 in travelling expenses for 18,000 miles per
annum. The Public Service rate for 18,000 miles would
yield £7,070. The Automobile Association estimated cost
of driving 18,000 miles is £8,239.
3. Other employees in Bord Na Mona have been treated more
favourably, either through the provision of Company cars
or fixed travelling allowances. The agreement in early
1993 was temporary but has been indefinitely extended,
and has led to considerable financial loss to the
workers concerned.
BORD'S ARGUMENTS:
4. 1. The approach adopted with the three workers concerned to
achieve the required reduction in travel expenses was
the same as that adopted with a number of employees.
2. The proposal put forward in January, 1993, was by the
workers themselves (7,500 miles at standard rate with
additional miles at 5 pence per mile). In 1995, the
three workers sought to change this agreement.
3. Any concession to the Union's claim could have
repercussive effects across the Peat Energy Division.
The Bord must keep costs at a minimum to remain
competitive.
RECOMMENDATION:
There is a conflict of opinion between the parties as to the
status of the 1993 agreement. Taking into account all the
information presented, the Court recommends that the standard
mileage rate threshold be increased to 8,500 miles, with
additional miles paid at 5 pence per mile.
This in full and final settlement of the dispute.
~
Signed on behalf of the Labour Court
27th November, 1995 Finbarr Flood
C.O'N./D.T. _______________
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Ciaran O'Neill, Court Secretary.