FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : AER RIANTA, SHANNON - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr McHenry Worker Member: Mr O'Neill |
1. Pay rates for permanent contract staff in Duty Free.
BACKGROUND:
2. The dispute concerns the incremental pay-scales for new permanent sales assistants in the Duty Free shop at Shannon Airport. During 1988/1989, discussions took place between the parties concerning a range of issues including, the Company states, the introduction of a new 24-year scale. In early 1994, the first of the employees concerned were appointed and, towards the end of 1995, the Union rejected the notion that there had been agreement on the issue of a 24-year scale, adding that the only agreement on pay scales was in relation to the traditional 8-year scale (agreed in 1975). A number of conciliation conferences followed, arising from which the Company proposed the introduction of a 16-year scale in return for which it sought a number of concessions; including the introduction of permanent part-time staff, an increase in the number of Company representatives, acceptance of pre-priced goods and an extension of the use of casual staff in line with business requirements. The 16-year scale was rejected by the Union. The last of a number of conciliation conferences on the dispute was held on the 29th of April, 1998. The matter was referred to the Labour Court on the 31st of August, 1998, in accordance with section 26(1) of the Industrial Relations Act, 1990. The Court carried out its investigation, in Limerick, on the 25th of November, 1998.
UNION'S ARGUMENTS:
1. There has never been any agreement between the Company and the Union to lengthen the pay-scales from an 8-year scale and no documentation exists showing that such an agreement exists.
2. The workers in question should be restored to their rightful pay-scales structure on a retrospective basis, thereby, righting the injustice visited on them by the Company.
COMPANY'S ARGUMENTS:
1. The 16-year pay-scale will help offset the expected drop in sales arising from the ending of the duty free sales to the passengers within the European Union and will assist in sustaining the Company's competitiveness in developing a duty band retail business post July, 1999.
2. Peaking is a particular problem at Shannon Airport where 70% of revenue accrues between 11.00 h and 14.00 h. The need to employ staff as outlined in the productivity elements of the Company's proposals is essential. With the abolition of duty free sales, peaking difficulties are expected to be exacerbated. Accordingly, the increased use of representatives from supplier companies to enhance sales of their particular merchandise is sought by the Company along with acceptance of pre-priced goods at intake point.
3. The 16-year scale is fair and reasonable as the associated productivity elements will insure the continued viability of the business after July, 1999.
RECOMMENDATION:
This dispute between the parties has arisen as the Company believed that a 24-year scale had been introduced in 1989 for sales assistants in the Duty Free shop. The Union disputed this and maintains that while such a scale may have been the subject of negotiations, no such scale was ever agreed at the time and, therefore, that these employees should be on an 8-year scale, as outlined in Appendix 1 of the Union submission. At the hearing it became clear that this 8-year scale is actually an 11-year scale due to the three extra increments which apply to long-serving employees.
It seems extraordinary that no documentary evidence exists to substantiate whether or not an agreement exists on the 24-year scale for the permanent sales assistants. The Court, presented with conflicting views, finds that in the absence of any evidence, the claimants should be red-circled on to the 11-year scale, in return they should respond positively to the need for productivity/flexibility, as sought by management (the employees involved being placed on the nearest monetary point of the scale).
The Court also recommends that all new employees employed since 1st April, 1998, should be placed on the new 16-year scale, as proposed by the Company on 22nd April, 1997.
These recommendations are being made as a package and are subject to acceptance as such.
Signed on behalf of the Labour Court
Caroline Jenkinson
21st December, 1998______________________
MK/BCDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Michael Keegan, Court Secretary.