FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : NATIONAL TOLL ROADS (REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr McGrath Employer Member: Mr Pierce Worker Member: Ms Ni Mhurchu |
1. Sunday premium payments.
BACKGROUND:
2. The Company, which operates the Eastlink and Westlink Toll bridges employs 65 operational staff, including supervisors, part-time operators and cash office operators. Full-time staff provide the basic 24-hour cover and work a 12-hour shift system on a three day on, three day off basis across a 7-day roster. The dispute concerns the payment of a premium to full-time workers for working on Sundays. The Company's offer of £15 premium payment for Sunday was unacceptable to the workers. The Union is seeking a payment of double time. The Company's position is that it operates a shift system which already takes account of the notion of premium payment. The parties have recently concluded a comprehensive agreement which involves a 14% average increase in basic rates for staff, plus a profit-share scheme. The £15 was offered in the context of the conclusion of the comprehensive agreement but was put aside for consideration by a third party.
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 12th of May, 1997, in accordance with Section 26(1) of the Industrial Relations Act, 1990. The Court carried out its investigation on the 24th of July, 1997.
UNION'S ARGUMENTS:
3. 1. The kind of shift rate paid by the Company is normal in employment with 5-day working and weekends have not been recognised therein. At the time of its introduction, 7-day working was unusual and as there was no comparable employment, a none too generous rate was agreed. In the light of the progress made by the Company over the years, the workers should be generously rewarded for committing their Sundays on such a regular basis to the Company's advantage.
2. During the negotiations on the comprehensive agreement the Company conceded the principle of a Sunday premium by offering £15 per Sunday. However, the £15 bears no relevance to any existing payment in the Company. A number of companies (details supplied) pay double time, or enhanced shift premium for Sundays, none of which, in terms of profitability, is comparable to this Company.
3. The staff in the Company have a reputation for courtesy and customer relations second to none. They have been a major contributory factor in the high profits and smooth operation of the toll facilities at both the Eastlink and Westlink. They have coped with the increased business without disruption and with flexibility and a pro-active approach.
4. The cost of payment in full of double time for Sundays would amount to approximately £100,000 which would amount to only a 7% increase on wage costs. Due to its high profits (details supplied) the Company can well afford to pay this premium.
COMPANY'S ARGUMENTS:
4. 1. The rate of pay applicable to full-time employees and the shift premia that apply reflects the requirement to work three Sundays in every six. The Working Time Bill does not specify what premium should be paid for working on Sundays and it is the Company's view that the offer of an allowance of £15 meets its obligations in that proposed legislation.
2. Since entering into negotiations on the comprehensive agreement, the Company has recruited new staff (12) and made organisational changes with regard to making the job of serving the customer as pleasant as possible. In addition to increased staff numbers and organisational changes, the basic pay increase of 8%, the introduction of service pay and an additional Sunday allowance, and the enhancement of annual leave and sick-pay entitlements all combine to present a greatly improved benefit package to staff which the Company feels adequately addresses the Union's claim.
3. The profit-sharing scheme which has been introduced and which provides for a payment of 10% of basic pay or participation in a share-purchase scheme to the level of 10% of basic pay is far higher than the norm in industry and reflects the Company's commitment to participation by the staff in the success of the Company.
4. On the basis of the complete package accepted by the Union, it must be accepted that this Company has acted in good faith and has attempted to respond in an innovative way to the changes in the business and to take account of the Union's claim. This further claim for an additional premium for Sundays is considered at this time to be excessive in view of the total package that has been accepted.
RECOMMENDATION:
The Court, having considered all the issues raised by the parties in their oral and written submissions, recommends that the Company offer of £15 on Sunday in addition to the paid shift premium be increased to £25 per Sunday.
Signed on behalf of the Labour Court
Tom McGrath
16th of September, 1997______________________
M.K./D.T.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Michael Keegan, Court Secretary.