FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 13(9), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : MAYSTEEL TEORANTA (REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION DIVISION : Chairman: Mr Flood Employer Member: Mr Pierce Worker Member: Ms Ni Mhurchu |
1. Appeal against Rights Commissioner's Recommendation RC568/97 concerning the demotion of three supervisors.
BACKGROUND:
2. The Company is involved in the fabrication of sheet metal for the computer, medical and telecommunications sectors. It employs approximately 140 people at two plants, situated at Inverin and Spiddal, County Galway.
In 1993, due to the re-organisation of the Inverin plant, management proposed that six supervisory posts be terminated. The workers concerned agreed to step aside on the basis that their rates of pay would be red-circled. Subsequently the Company expanded and three of the ex-supervisors were re-appointed.
The dispute before the Court concerns the Union's claim on behalf of the three ex-supervisors for compensation for the loss of earnings suffered. It argues that management made a commitment in 1993, to reinstate all of the supervisors if the need arose to re-establish the supervisory positions in the future. The Company denies it made a commitment.
Local level discussions failed to resolve the matter and the dispute was referred to a Rights Commissioner for investigation and recommendation. The Rights Commissioner's findings and recommendation are as follows:-
"I do not believe that a major breach by the Company has occurred. Matters might have been handled differently on both sides. I consider that a modest payment is appropriate in the circumstances.
I recommend that the Company offers and the three applicants accept the sum of £600 each in settlement of this dispute."
The Rights Commissioner's recommendation was appealed by the Union to the Labour Court on the 12th of February, 1998 under Section 13(9) of the Industrial Relations Act, 1969. A Labour Court hearing took place in Galway on the 7th of October, 1998. The first date suitable to both parties.
UNION'S ARGUMENTS:
3. 1. The supervisors gave their full co-operation to the reorganisation based on a number of assurances:-
(a) Their salaries would be red-circled.
(b) The positions vacated were gone forever at Inverin.
(c) If the positions were to be re-instated, the workers would get first refusal.
2. Since 1995 eight new supervisory posts have been established. The workers were not given adequate opportunity to apply for the new positions.
3. The workers have suffered a substantial financial loss of £70 per week.
4. Their demotion would damage their prospects of gaining employment in the area.
COMPANY'S ARGUMENTS:
4. 1. At the time, the six people concerned voluntarily accepted to step aside as supervisors without loss of pay.
2. Since 1993, nine supervisory positions have been advertised internally. None of the three claimants applied for these positions.
3. No guarantees were given to the claimants that they would be reinstated as supervisors. In the circumstances the Company respectfully ask the Court to decide that the recommendation of the Rights Commissioner was fair and reasonable.
DECISION:
The Court having considered the written and oral submissions upholds the Rights Commissioner's findings but amends the figure of compensation to £1,000 per individual.
The Court so decides.
Signed on behalf of the Labour Court
Finbarr Flood
20th October, 1998______________________
F.B./D.T.Chairman
NOTE
Enquiries concerning this Decision should be addressed to Fran Brennan, Court Secretary.