FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : AUTOMOBILE ASSOCIATION (REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr McHenry Worker Member: Mr O'Neill |
1. Compensation for relocation.
BACKGROUND:
2. The Association is a motoring organisation which employs almost 300 staff at ten locations around the country. Nine years ago the Association transferred some staff from its head office in Suffolk Street, Dublin 2 to Blackrock, Co. Dublin. Staff were paid up to £1,200 gross to compensate for the extra costs involved. In mid 1997 the Association announced its decision to close the Blackrock office and to transfer 22 staff to South William Street, Dublin 2. It also announced the future closure of its Blackrock shop which employs 4 staff and its intention to open another shop within the general area. The dispute concerns the Union's claim for compensation for disturbance, the retention of informal flexible working times, the provision of car park spaces to be available on a rota basis and 50% of the agreed compensation to be paid to six staff with company cars.
The issues were the subject of local negotiations and of a conciliation conference under the auspices of the Labour Relations Commission on the 19th of September, 1997. The Industrial Relations Officer put forward a proposal (details furnished to the Court) which was rejected by the Union. The parties then requested referral to the Labour Court in accordance with Section 26(1) of the Industrial Relations Act, 1990. The Court investigated the dispute on the 9th of January, 1998.
UNION'S ARGUMENTS:
3. 1. Management has acknowledged that the relocation will provide ongoing savings for the Association. The previous compensation paid would be equal to £1,800 to-day which should be further increased to take account of the additional travelling time, travel costs, parking restrictions and disruption to domestic arrangements which staff will now encounter.
2. Irrespective of their number of years service in Blackrock all staff will face increased costs for the remainder of their working lives with the Association. They should be compensated equally in the most tax efficient manner. Staff with company cars should receive 50% compensation as in the previous relocation to Blackrock.
3. Most reasonable employers provide some parking facilities for staff. Unlike ten years ago there is now a complete absence of free parking within the Dublin 1 and Dublin 2 districts. A number of car parking spaces should, therefore, be provided on a rota basis for staff transferring from Blackrock.
ASSOCIATION'S ARGUMENTS:
4. 1. The Association acknowledges that there is a degree of disturbance related to the relocation of the office. The Industrial Relations Officer's compensation proposal based on length of service in Blackrock is a fair one. In addition the Association is prepared to provide luncheon vouchers for staff for four months.
2. The Association is a mutual organisation, run on a "not for profit" basis and all income generated is re-invested into the organisation to pay for costs and to provide services to members.
3. The new premises offers newer and better working conditions for staff. Management has agreed to allow flexible starting and finishing times provided that adequate cover is maintained for customer services.
4. The Association does not have car parking facilities for staff. A small number of spaces which came with the new premises are utilised by senior management. There are no additional spaces available. At the moment the Association has a central garage in The Coombe area which may be used by relocating staff.
RECOMMENDATION:
The Court is satisfied that the proposals put forward at conciliation are reasonable and should be accepted, subject to the following modifications:-
1. The Association should provide two parking spaces, up to the end of 1998,
for the use of staff relocating who do not have the use of a company car.
2. Staff relocating who are supplied with a company car should be paid 40%
of the compensation which would otherwise be payable to each of them,
subject to a maximum payment of £600 in any case.
3. Luncheon vouchers should be made available to staff for the first six months
following relocation.
The Court notes the Association's assurance that compensation payments will be made in the most tax efficient manner possible.
Signed on behalf of the Labour Court
Kevin Duffy
20th January, 1998______________________
D.G./D.T.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Dympna Greene, Court Secretary.