FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : CERT (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Employer Member: Worker Member: |
1. Imposition of 11 month contracts.
BACKGROUND:
2. The dispute before the Court concerns the Union's claim regarding management's practice of employing workers on 11 month contracts.
Currently CERT employs approximately 115 workers i.e., permanent staff, workers on long-term contracts and workers on 11 month contracts. It only has sanction to employ 91 employees in permanent positions.
Since the mid-1980s management has sought from its parent Department (formerly the Department of Labour and since 1993 the Department of Tourism and Trade) sanction for an increase in the number of permanent staff.
In 1993 CERT retained the services of Price Waterhouse to conduct a review of all its activities. The results of the review were to form the basis for seeking additional staffing. The review which recommended a minimum of 115 posts was presented in June, 1993. With the recommendation approved by the Council of CERT it was forwarded to the Department of Tourism and Trade in July, 1993. There was no response from the Department over the following months and management decided in July, 1994 that all future posts would be on the basis of 11 month contracts.
The Union objected to this course of action. Local level discussions took place but progress was not made. The matter was referred to the Labour Relations Commission. Conciliation conferences took place on 9th May, 1995 and 9th November, 1995. Representatives of the Department of Tourism and Trade were invited to attend a further conciliation conference. The Department declined the invitation.
As progress could not be made the matter was referred to the Labour Court on 18th June, 1996 under Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 1st August, 1996.
UNION'S ARGUMENTS:
3. 1. The imposition of 11 month contracts is unacceptable to the Union. This practice does not lend itself to the overall efficiency of the organisation. At the end of the employees contracts they are replaced by workers on similar contracts.
2. The Union is concerned that management are using 11 months contracts so as to avoid liability under the terms of the Unfair Dismissals Act.
3. The Union is seeking that an agreed policy on the employment of permanent and contract staff be negotiated through normal procedures.
COMPANY'S ARGUMENTS:
4. 1. Management recognise that the issue of the staffing quota creates uncertainty among staff. It has presented a case for an increase in staff to the parent departments on an on-going basis since 1984.
2. Since 1990, management has co-operated with 4 separate investigations and reviews of the staffing needs of the organisation. No decision has been made by the Department, other than the sanction of 91 posts given in 1992.
3. With no approval for an increased quota, CERT has employed a number of workers on long-term contracts and these contracts have been renewed a number of times in some cases.
4. It was made clear by the Department in May, 1996 that a maximum of 91 permanent staff would be permitted. Consequently, CERT is carrying out a comprehensive analysis of both its human resource requirements and its organisation structure to ensure as far as possible the delivery of its targets.
RECOMMENDATION:
The issue before the Court was the imposition of 11 months contracts. The Court notes the Company's response on this issue made verbally at the hearing and accordingly recommends that this practice be discontinued.
It was clear to the Court that resolution of the difficulties facing the organisation will only be achieved from an industrial relations point of view if there is full disclosure of information and more use of participative procedures.
Signed on behalf of the Labour Court
Evelyn Owens
15th August, 1996______________________
F.B./D.T.Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Fran Brennan, Court Secretary.