FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : LIFT AND ESCALATOR COMPANIES (REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - TECHNICAL ENGINEERING AND ELECTRICAL UNION (TEEU) DIVISION : Chairman: Ms Owens Employer Member: Mr Pierce Worker Member: Ms Ni Mhurchu |
1. Increase in hourly rates of pay.
BACKGROUND:
2. The dispute concerns a pay claim by the Union on behalf of its members employed by the following Lift and Escalator Companies:- Otis Ireland Ltd.; Schindlers Lifts Ltd.; Irish Lift Services; Ennis Lifts; and Midwest Lifts. The above companies employ approximately 55% of shift engineers in the industry. The Union states that following the settlement of the electricians' claim with the Electrical Contractors Association (ECA) a claim was made by the respective workforces of the above companies for £11.00 per hour for lift engineers. An overtime ban and a ban on emergency call-outs was imposed in pursuance of the claim.
Management rejects the claim. Several meetings between the parties failed to resolve the dispute.
On the 17th of October, 1997 both sides entered further negotiations to try and reach agreement. The companies proposed a new Field Working Agreement for the Industry which provided for the following:-
* A new pay and grading structure;
* Increased flexibility in recruitment of skills and work
flexibility in the industry;
* Different annual leave calculations;
* Revision of the travelling zones;
* The use of vendoring (sub-contracting) in the industry.
On the 8th of December, 1997 the Union responded by issuing its own proposals for a new agreement as follows:-
Field Engineer - £11.00 per hour
Senior Engineer - £11.66 per hour
Lead Engineer - £12.10 per hour
Principal Engineer - £13.20 per hour
The hourly rates of pay for electricians training to Field Engineers on a 3 year cycle to be as follows:-
End of 1st year - £9.91 per hour
End of 2nd year - £10.38 per hour
End of 3rd year - £11.00 per hour
The Union's proposals were rejected by management.
On the 16th of December, 1997 management put forward its final offer as a means of resolving the dispute based on a skills/progression as per management's proposals for a Field Working Agreement. It includes service pay but excludes meals and travel allowances. The main provisions of the Field Working Agreement are the proposed new rates of pay as follows:-
Field Engineer - £9.16 per hour
Senior Engineer - £9.75 per hour
Lead Engineer - £10.33 per hour
Principal Engineer - £10.95 per hour
Retrospection will be to the 12th of October, 1997. The hourly rates are inclusive of phases 1 and 2 of Partnership 2000. Further increases of 2% will apply in September, 1998, 1.5% in May, 1999 and 1% in February, 2000. Differentials for Foremen and Chargehands would no longer apply.
Apprentices to be paid relative to the Field Engineer rate as follows:-
1 year - 30%
2 year - 45%
3 year - 65%
4 year - 80%
Management's proposals were rejected by the Union.
As no agreement was possible between the parties the dispute was referred to the Conciliation Service of the Labour Relations Commission. Conciliation conferences were held on the 14th of January, 1998 and the 2nd of February, 1998 but no agreement was reached. The dispute was referred to the Labour Court on the 19th of February, 1998 under Section 26(1) of the Industrial Relations Act, 1990. The Court investigated the dispute on the 13th of March, 1998.
UNION'S ARGUMENTS:
3. 1. There is a lack of trust, a lack of training and development, shortages of apprentices and qualified electricians in the industry which management need to address.
2. The Union claims that it is essential for the future stability, profitability and competitiveness of the industry that a partnership approach be adopted for the benefit of all concerned.
3. The Union is seeking a rate of £11.00 per hour for Field Engineers on the basis that there has been a traditional differential of £1.80 per hour above the electrical contractors rate for this grade.
4. The document of the 8th of December, 1997 presented to management for consideration is the Union's final position in the matter.
COMPANY'S ARGUMENTS:
4. 1. The increase being sought by the Union amounts to approximately a 40% increase in pay based on a 39 hour working week.
2. The Shop Stewards concerned took unofficial industrial action which is in breach of the procedures contained in the Lift and Escalator Agreement for the industry.
3. The claim is excessive and is in breach of the agreement under Partnership 2000.
4. The companies involved in this dispute have long term maintenance contracts with major customers which only provide for increases in line with the Consumer Price Index.
RECOMMENDATION:
The Court has considered at length the extensive oral and written submissions made by both parties to this dispute.
The Court wish to record firstly its dissatisfaction with the unoffical action commenced by the workers involved prior to the exhaustion of the agreed dispute procedures. It does not find such action helpful to the establishment of agreements or the settlement of disputes.
This claim first arose from an analogue claim settlement in the NJIC for Electrical Contractors. This allowed for a rate of £9.2229 per hour inclusive of first hour travel and meal and tool allowances for an electrican 6 years out-of-time, from 1/12/1997. The Court notes the agreement with the Union in the 1991 analogue settlement with the Electrical Contractors that the analogue increases then would not form the basis of any other claim.
The Union initially claimed a rate of £11.00 per hour, including the first hour of travel and lunch allowances. On rejection by the employers this claim was resubmitted to exclude travel and lunch allowances.
The Court notes that the Union stated at the hearing that it could go along with the proposed conditions in the Company offer of the 16th December,1997, other than the payment terms.
The Court recommends that this offer be accepted, with the changes in terms modified as below:
Senior Engineer (Lift Engineer) :- £11.66 per hour, inclusive of the first hour travel and meal allowances. Rate to apply from 12/10/1997.
Other rates to be scaled as per employers proposal, and discussions on pension arrangements to be commenced forthwith.
Signed on behalf of the Labour Court
Evelyn Owens
7th April, 1998______________________
L.W./D.T.Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Larry Wisely, Court Secretary.