FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : IRISH FERRIES - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Keogh Worker Member: Ms Ni Mhurchu |
1. Pay and conditions of officers on the new high-speed ferry.
BACKGROUND:
2. In 1998, the Company announced that it had commissioned the building of a new fast ferry to operate on the Irish Sea. Over one hundred new permanent jobs will be created on board the vessel which is due to commence operating on the 15th of June, 1999. The issue in dispute concerns the terms and conditions, particularly the crewing ratio, of the ship's officers. The Union is claiming that the existing Company/Union agreement, which applies from the 1st of September, 1997, for a minimum of three years, should apply to the officers of the new vessel. The Company proposes to implement a new comprehensive agreement which would include a crewing ratio of 2:16 instead of the current ratio of 2:6.
The issue was the subject of local negotiations and of two conciliation conferences under the auspices of the Labour Relations Commission on the 28th of January, 1999, and the 14th of April, 1999. As agreement was not possible the dispute was referred to the Labour Court in accordance with Section 26(1) of the Industrial Relations Act, 1990. The Court investigated the dispute on the 13th of May, 1999.
UNION'S ARGUMENTS:
3.1. The officers reluctantly accepted the Company/Union agreement for the Irish Sea in September, 1997, although it did not meet their expectations. It should be allowed to continue for the next sixteen months before negotiations begin on a new one. This will allow time to identify any difficulties or costings associated with the new vessel.
2. The Company has attempted to erode the officers' crewing ratio at every opportunity. The Union will not allow a 'two tier system', whereby some officers have a ratio of 2:6 while others have a ratio of 2:16. Since 1987 the crewing ratio has been reduced from 3:7 to 2:6.
3. The officers are willing to be flexible with rosters and time off in order to ensure that minimum disruption would occur during peak season. They are also prepared to examine cost savings if identified.
4. Due to the intensity of operation of the fast craft, the Union is seeking the restoration of the crewing ratio of 3:0, as applied in 1993 when the business and profits were much weaker. Officers who hold the necessary certificates to operate both fast craft and conventional ferries should also be paid a sum of £1,000 per annum.
COMPANY'S ARGUMENTS:
4.1. From a total of 100 new posts created on board the new fast ferry, 24 positions are at management level. All staff have accepted the terms and conditions on offer, including the ratio of 2:16, except 7 officers who applied from the existing conventional ferries. The positions on offer to the conventional officers involve promotions and salary increases.
2. The staff on the conventional ferries will not be affected by the introduction of the new service and the Company has offered to red-circle the existing crewing officers' ratio at 2:6. Applicants who accept the full terms of the new comprehensive agreement will be paid a once-off lump sum in respect of the changes involved.
3. The Company is operating in an extremely competitive market and the new service is expected to lose money over the first few years. A crewing ratio of 2:6 would create additional costs in the order of 20%. The Company must ensure that cost competitiveness and best practice are in place in the new service. Both Stena and Isle of Man operate fast ferries with a crewing ratio of 2:16.
RECOMMENDATION:
The Court has given serious consideration to the submissions made by the parties and recognises that the central issue for the officer grades involved in this dispute is the Company's intention to reduce the crewing ratio from 2:6 (which applies to conventional ferries) to 2:16 for the new fast ferry service.
The Court is faced with a situation where, on the one hand, this is being put forward as a crucial issue for the effective operation of the new service, to ensure its cost effectiveness and to compete with its competitors. Irish Ferries' competitors all have a crewing ratio of 2:16 on their fast ferries. On the other hand, the Union are opposed to any reduction in ratios, as it goes against the comprehensive agreement in existence for officer grades on the Irish Sea.
The Court is satisfied that the comprehensive agreement of September, 1997 applies to the officers employed on the Irish Sea on conventional ferries, and not to this new service which is fundamentally a different service. There are already in existence agreements in Irish Ferries on conventional ferries which recognise different operational needs and are tailored to suit particular circumstances, e.g. Irish Ferries (UK), Irish Ferries (Continental), the "Bison" and the "Wicklow".
The Court is satisfied that there are clear differences between the conventional ferries and the new fast ferry and that these differences are such that different conditions of employment can be justified. Officers working on the fast ferry, unlike the conventional ferry, will not be required to stay away from home. They will be able to return home after work each day.
The Court is also satisfied that the norm in other companies who operate both conventional and fast ferries is to have a ratio of 2:16 for the fast ferry service. The Court accepts that this new service must operate on a competitive basis with these other companies.
Therefore, the Court recommends that the parties should work towards the objective of setting a crewing ratio of 2:16, the consequences of which should be discussed between the parties. This is recommended subject to the following conditions:
- That the fast ferry crewing and operational conditions form a separate agreement using the 1997 comprehensive agreement as a base. Co-operation with the change in conditions should be recognised by the payment of a generous once-off lump sum to each officer in recognition of the substantial increase in the number of days required to be worked.
- The Union has indicated a willingness and a wish to explore operational problems, if any, with the employer. This should be done before consulting the membership in a ballot on an agreement of conditions for the new ferry which should be annexed, as a separate section, to the current comprehensive agreement.
- This new agreement should be reviewed in September 2000 when the conventional ferry agreement is due for renewal.
- The Court supports the Company's proposal of ensuring that existing officers on the conventional ferries retain their crewing ratio of 2:6 for their working life, to ensure this guarantee, the Court recommends that such an agreement should be registered by the Court, under Section 27 of the Industrial Relations Act, 1946.
- Following acceptance of this recommendation, any issues incapable of resolution at local level may be referred to the Court for a further recommendation and every effort will be made to deal with issues expeditiously.
Signed on behalf of the Labour Court
Caroline Jenkinson
18th May, 1999______________________
DG/BCDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Dympna Greene, Court Secretary.