FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : AER LINGUS - AND - AMALGAMATED ENGINEERING AND ELECTRICAL UNION DIVISION : Chairman: Mr Flood Employer Member: Mr Keogh Worker Member: Ms Ni Mhurchu |
1. Dispute regarding the non-payment of a lump sum to apprentices.
BACKGROUND:
2. The dispute before the Court concerns a claim by the Union on behalf of thirty six 2nd and 3rd Year Apprentice Aircraft Mechanics for a lump sum payment. In late 1997, TEAM Aer Lingus was taken over by FLS Aerospace. All employees who transferred to the new employer received a lump sum payment with the exception of the 2nd and 3rd Year Apprentice Aircraft Mechanics. 1st year apprentices who commenced in 1998 signed a contract of employment stating that they would not receive any transfer package. There were no 4th year apprentices at the time of the takeover.
The Union argues that the apprentices concerned are entitled to the lump sum payment.
The Company states that this issue was not raised during the negotiations regarding the transfer and that there is no obligation on the Company to pay the lump sum to the apprentices.
The dispute was not resolved at local level. The dispute was referred to the Labour Court in accordance with Section 20(1) of the Industrial Relations Act, 1969. A Labour Court hearing took place on the 10th of January, 2000. The Union agreed to be bound by the Court's recommendation.
UNION'S ARGUMENTS:
3. 1. All staff who transferred, including short term workers, received a lump sum payment. The only staff excluded were the apprentices. This is not acceptable.
2. The apprentices received full share option and flight concessions as did all the other permanent employees but they did not receive the lump sum. In calculating the package for crafts people, their apprenticeship was taken into account.
3. The Union is now seeking payment of a lump sum to the apprentices concerned.
COMPANY'S ARGUMENTS:
4. 1. The Union had every opportunity to discuss this issue during negotiations regarding the transfer.
2. Other staff working with TEAM Aer Lingus did not receive the lump sum associated with the transfer to FLS Aerospace. The new employer has honoured its commitments to the apprentices.
RECOMMENDATION:
The Company's position is that it had no obligation to 2nd and 3rd year apprentices in this case and that apprentices had no entitlement to be covered by the negotiations that took place in relation to the transfer to FLS. However, it is clear that some concessions were made to this group at the time of transfer but no satisfactory explanation was given for this decision.
The Court notes that the Contract of Employment was changed for 1st year apprentices to deal with future situations.
The Court is conscious that the Company has made an offer of £500 and £750 as a means of settling this case.
Having considered all the information before it, the Court recommends that the Company offer be doubled to £1,000 for 2nd year apprentices and £1,500 for 3rd year apprentices, in full and final settlement of this claim.
Signed on behalf of the Labour Court
Finbarr Flood
28th February, 2000______________________
G.B/D.T.Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Gerardine Buckley, Court Secretary.