Labour Court Database __________________________________________________________________________________ File Number: CD9612 Case Number: LCR15100 Section / Act: S26(1) Parties: AER RIANTA - and - CRAFT GROUP OF UNIONS |
Dispute concerning the non-payment of increases under the Programme for Economic and Social Progress (PESP) and the Programme for Competitiveness and Work (PCW).
Recommendation:
The Court considered the written and oral submissions made by the
parties and the correspondence exchanged between the parties.
Having considered these, the Court is of the view that the
application of the parity agreement as applied by the Company is
correct, and therefore rejects the Unions' claim.
Division: Mr Flood Mr McHenry Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD9612 RECOMMENDATION NO. LCR15100
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
AER RIANTA
AND
CRAFT GROUP OF UNIONS
SUBJECT:
1. Dispute concerning the non-payment of increases under the
Programme for Economic and Social Progress (PESP) and the
Programme for Competitiveness and Work (PCW).
BACKGROUND:
2. The claim concerns workers who are employed as craftworkers
and technical supervisors at Dublin, Shannon and Cork
Airports. The basic pay for these workers has, since 1967,
been determined on the basis of a parity relationship with
craftworkers in Aer Lingus. In 1995 a pay freeze was
implemented in Aer Lingus which involved the non-payment of
the 3.75% final phase of the PESP and the first two phases of
the PCW. Aer Rianta followed a similar course and withheld
payment of the increases. In August, 1995 the Group of
Unions submitted a claim for the implementation of these
payments. Management rejected the claim. The dispute was
referred to the Labour Relations Commission and a
conciliation conference was held on the 27th November, 1995.
Agreement was not possible and the dispute was referred to
the Labour Court on the 15th January, 1996. A Court hearing
was held on the 28th February, 1996.
UNIONS' ARGUMENTS:
3. 1. The Company's action in not paying the increases due
under the PESP and PCW is in breach of those agreements.
2. There is no valid reason for the Company's action as it
is in a sound financial and commercial position. It is
generating substantial profits and can well afford to
pay the increases due.
3. The Company has paid the full terms of the PESP and PCW
to all other grades within the Company.
4. Concession of the claim will not lead to repercussive
claims.
COMPANY'S ARGUMENTS:
4. 1. The workers concerned are clearly governed by a parity
relationship with Aer Lingus since 1967 which has been
very beneficial to them over the years. Craftworkers
recently received significant payments arising from this
relationship which were not paid to other categories of
workers in Aer Rianta. The terms were well in excess of
the present claim.
2. The craftworkers already have a pay scale that is among
the highest when compared to industry norms.
3. The parity agreement binds the craftworkers to
agreements made on pay in Aer Lingus which on this
occasion includes the agreement reached on the PESP/PCW.
4. Concession of the claim would seriously affect the
Company's competitive position.
5. The possible repercussions in Aer Lingus, if the claim
was conceded, must be considered.
RECOMMENDATION:
The Court considered the written and oral submissions made by the
parties and the correspondence exchanged between the parties.
Having considered these, the Court is of the view that the
application of the parity agreement as applied by the Company is
correct, and therefore rejects the Unions' claim.
~
Signed on behalf of the Labour Court
26th April, 1996 Finbarr Flood
T.O'D./S.G. ----------------
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Tom O'Dea , Court Secretary.