FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : FORFAS, FORBAIRT, I.D.A. - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Employer Member: Worker Member: |
1. Fixed-term Contract Employment.
BACKGROUND:
2. The dispute concerns the development of policy in relation to the employment of staff on fixed-term contracts and the access of such contract staff to internal competitions for promotion. Whilst accepting the notion of fixed-term contracts in certain circumstances, the Union has difficulty with the number of such posts, which it would seek to have kept at a minimum, and the nature of work performed by employees in those posts. The Union is also opposed to the granting to employees on fixed-term contracts of access to internal promotion. This it would see as diminishing the conditions of employment of permanent staff. The Agencies' position is that the requirement for some element of contract employment is strategic and relates to the need to maintain a regular intake of fresh talent with up-to-date commercial experience. The Agencies are also of the view that the eligibility of fixed-term contract staff for promotional competitions, on the same basis as permanent staff, is essential.
The dispute was the subject of a conciliation conference under the auspices of the Labour Relations Commission, at which agreement was not reached. The dispute was referred to the Labour Court, on the 10th of July, 1996, in accordance with Section 26(1) of the Industrial Relations Act, 1990. The Court carried out its investigation on the 20th of September, 1996.
UNION'S ARGUMENTS:
3. 1. It is accepted that within the public service it may be necessary to employ certain categories of staff on a contract basis. The Union, however, objects to the filling of permanent posts with 5-year fixed-term contract workers.
2. The number of 5-year fixed-term contract workers is above the normal complement of contract workers in the Agencies.
3. According to management, the 5-year fixed-term contract workers are eligible to be promoted into permanency during their 5-year contracts. This is a breach of agreed procedures.
4. Those recruited on contract do not enjoy the same terms and conditions as their colleagues. They are not treated equally and will always be seen to be different by themselves and by the rest of the organisation. They are filling permanent posts and, accordingly, they wish to be made permanent.
5. Contract staff who are filling permanent posts should be made permanent and, in future, permanent posts with the Agencies should be filled on a permanent basis. This would eliminate the problem of contract workers being eligible for internal competitions.
6. The concept of the introduction of "new blood" with relevant business experience is accepted. However, the Union objects to the notion of this new blood being recruited on a 5-year contract basis. When contracts are then not renewed, the experience gained over 5 years will be lost.
AGENCIES' ARGUMENTS:
4. The proposal to consider fixed-term contract staff to be eligible for competitions on the same basis as permanent staff is essential because:
(1) The Agencies believe that it is not unreasonable to offer fixed-term contracts to individuals;
(2) It is not satisfactory or practical to designate all contract staff in long-term posts as permanent staff, as the Agencies need to employ a percentage of staff on fixed-term contracts, where it makes good business sense, where it is judged necessary in order to achieve the business objectives of the Agency and to ensure a regular/on-going input of recent external commercial experience into a particular business area;
(3) The overall percentage of staff on fixed-term contracts would not exceed 20% at any grade in an Agency. Management is not seeking to convert the status of the Agencies' staff from permanent to contract. Management's action in converting posts from contract to permanent status clearly demonstrates this;
(4) The Agencies have done their utmost to ensure that fixed-term contract staff are treated no less favourably than permanent staff at equivalent grades. The Agencies have pursued and have been granted membership of the staff superannuation scheme for fixed-term contract staff who it is anticipated will have substantial service. Agreement has also been reached that increments will be paid to fixed-term contract staff at year end which is the same arrangement as for permanent staff, rather than the anniversary date of employment as was previous practice;
(5) Under the Agencies' equality policies, fixed-term contract staff should, in as far as it is consistent with their contract status, have the same opportunities and conditions as permanent staff including the right to apply for competitions on an equal footing with permanent staff;
(6) The Irish Congress of Trade Unions recently published a booklet on Minimum Standards for Atypical Work. It is eager to ensure that atypical workers (which includes employees on fixed-term contracts) are not exploited and discriminated against;
(7) The Agencies are multi-union organisations and the MSF Union has written to them on a number of occasions on this issue and has strongly made the case for contract staff being treated no less favourably than permanent staff.
RECOMMENDATION:
The Union's concern in relation to the employment of fixed-term contract staff into permanent positions is understandable. Equally, the Employers' requirement to recruit personnel with particular skills for short periods makes good business sense.
Having considered all the information before it, the Court makes the following Recommendation:-
(1) The parties to agree on the maximum number of permanent posts that can be filled on fixed-term contract;
(2) Fixed-term Recruits with over 2-year contracts to be eligible to apply for promotional opportunities.
The Court notes the Employer statement that the fixed-term Recruits will enjoy the same conditions as permanent staff.
Signed on behalf of the Labour Court
Finbarr Flood
21st October, 1996______________________
M.K./S.G.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Michael Keegan, Court Secretary.