FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : IRISH FERRIES - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Employer Member: Worker Member: |
1. (A) Rates of pay.
(B) Manning.
BACKGROUND:
2. The Company currently operates two multi-purpose car ferries across the Irish sea. The M.V. "Isle of Innisfree" operates between Dublin and Holyhead, while the M.V. "Isle of Inishturk" operates between Rosslare and Pembroke. In March, 1997, the Company will introduce a new ferry, the M.V. "Isle of Inishmore", on to the Dublin/Holyhead route.
The Union claims that the increased size and carrying capacity of the new vessel will create additional responsibilities and an increased workload for the officers. The Union has lodged a claim for a substantial increase in basic pay, payment of 3% under Clause 3 of the PESP which it claims was due to be paid on the introduction of the M.V. "Isle of Innisfree", a bonus scheme or a share options scheme based on the Company's profitability and an increase in manning levels of sixteen additional officers.
The Union's claim was the subject of local discussions between the parties and was then referred to the conciliation service of the Labour Relations Commission. A conciliation conference took place on 7th February, 1997. As agreement could not be achieved the issue was referred to the Labour Court in accordance with Section 26(1) of the Industrial Relations Act, 1990. The Court investigated the dispute on 24th February, 1997.
UNION'S ARGUMENTS:
3. 1. The carrying capacity of the new ship is more than four times that of its predecessor, yet Management proposes to maintain a manning level of 12 officers, as has previously applied on the M.V. "Isle of Inishturk". The ship cannot be run to the high standard required without additional manning.
2. Monitoring and continuous checks of all safety procedures are required on a daily/weekly/monthly basis. Extra manpower is also required at all times to carry out planned maintenance. The current practice of occasionally introducing an extra person is not sufficient.
3. New technology has been introduced with either limited or no training for the staff concerned. Extra manpower is required to relieve staff for training and to meet health and safety requirements. Additional manpower is also required to keep the AMOS-D database system up to date and to maintain the passenger services which are the equivalent of Grade A hotels and bars.
4. The co-operation and dedication of the staff concerned has enabled the Company to achieve the ISO 9002 accreditation. During the past couple of years senior members of the Company have enjoyed a substantial amount of financial gain due to large operating profits. The officers, who are responsible for the daily running, upkeep and maintenance of the vessels, should share in the Company's success by the introduction of a shared bonus scheme or a share options scheme.
COMPANY'S ARGUMENTS:
4. 1. Size alone is not the determining factor in deciding ships' manning. The Minimum Statutory Safety Regulations and the operation of the ship determine the officer complement on board a vessel. There is no need to increase current manning levels as surplus officers are presently being utilised between the vessels. The Union's claim for additional manning is not based on technical requirements.
2. The Company competes against cheap air fares, subsidised shipping and state of the art vessels operated by its main competitor. Its costs per hour are 24% higher than its competitor, while wage increases due in 1997 are 1.5% higher. The Company's crewing ratio for officers is 2.6 while its competitor's is only 2.0 and 2.17. This uncompetitive cost disadvantage cannot continue.
3. Since January, 1992 national wage agreements have increased salaries by 15.7%, while officers' salaries have increased by between 36% and 60%. Since 1992 the Company has invested over £150 million in port facilities and on two new ferries. The transfer of the M.V."Isle of Innisfree" to the Rosslare/Pembroke route will significantly increase this cost base and will necessitate competitive pricing policies and crewing costs to make the route sustainable.
RECOMMENDATION:
The Court considered the written and oral submissions made by the parties.
The Court recommends that the surplus officers currently being used by the Company should continue to be used on the two ships for as long as they are employed.
In relation to the claim for salary increases the Court believes that the way forward is by means of productivity discussions and that these should commence immediately and be completed within 3 months.
Signed on behalf of the Labour Court
Finbarr Flood
6th March, 1997______________________
D.G./S.G.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Dympna Greene, Court Secretary.