FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : IARNROD EIREANN - AND - ICTU IARNROD EIREANN GROUP OF UNIONS DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Keogh Worker Member: Mr. Somers |
1. Craft scales of pay.
BACKGROUND:
2. Due to the tightening labour market and the consequent difficulty in recruiting workers, Company management, in April, 1999, decided to eliminate the first 3 points of the craft workers' 11-point scale in respect of new recruits, thereby starting them on the 4th point of the scale. Arising from this decision, the Union side is claiming a £14.02 increase on each point of their pay-scale. No discussion had taken place between the parties prior to the implementation of the new starting point and, at present, a number of craft-workers who commenced before the implementation of the new starting point find themselves on a rate lower than that of new recruits. The dispute was the subject of a number of conciliation conferences during the course of which a proposal emerged, on the 21st of June, 1999, as follows:-
"The 2% increase under Clause 4(a) of P2000 should be implemented from 1st April, 1999. An Irish Productivity Centre audit of the 'Vision of the Future' Agreements, as a prelude to the productivity talks on a change agenda, to be constructed jointly by both parties".
Subsequently, on 22nd September, 1999, the Company proposed the following:-
1. All Craftworkers on rates of pay below the 4th point of the craft scale to be placed on the 4th point with effect from 1st September, 1999;
2. The present off-scale payment of £9.96 per week (now £10.11) to be
consolidated into the full weekly rate of those craftworkers currently in
receipt of this payment, with effect from 1st September, 1999, costs to be covered by a combination of greater flexibility and staff reductions;
3. Craft representatives will, jointly with management representatives, immediately
commence a comprehensive process to reorganise and restructure crafts in
Iarnrod Eireann (excluding building trades) in respect of skill/competence,
deployment, career progression and rates of pay/earnings. This process will
take a radical approach in order to achieve fundamental change including
greater efficiency/productivity and cost improvements to the benefit of the
Company and the staff. This process to be completed by 31st January, 2000;
4. The proposal made on 21st June, 1999 by the Industrial Relations Officer of the Labour Relations Commission to be immediately be implemented in full.
Agreement, however, was not reached by the parties and the dispute was referred to the Labour Court, on the 11th of January, 2000, in accordance with Section 26(1) of the Industrial Relations Act, 1990. The Court carried out its investigation on the 9th March, 2000.
UNION ARGUMENTS:
3. 1. The current wage structure for craftworkers has its origins in an agreement dated 1974, which set out an 11-point scale for craftsmen in the employ of Coras Iompar Eireann. This agreement specifically stated that all new entrants to the Company's service would start on the bottom point of the scale. This agreement was amended and updated in 1981, 1992 and 1996. The Company had ample opportunity to propose an amendment to the length of the scale on any of those occasions but chose not to do so. It is a central plank of the Union submission that the salary scale can only be amended by mutual agreement between the Company and the signatory unions, and cannot be altered or set aside unilaterally by one party.
2. In 1992, as part of the new Vision for the Future agreement, an off-scale payment of £30 per week was made to craftworkers. This payment was not reckonable for overtime or pension calculation. It was always an aspiration of the unions to have this payment fully consolidated into the rate of pay. Partial consolidation of £21 per week was achieved in 1996. However, the payment of £9, now £10.11, was not paid to workers recruited after this date. Consequently, a second salary scale evolved for craftworkers There was ample scope to make the Company salary scale more attractive and to address recruitment problems by consolidating the off-scale payment had the Company chosen to do so and the Unions would have adopted a constructive approach to this issue.
3. The Company has incremental salary scales in existence for other grades and it is the understanding of the craft group that it has not sought to alter or amend the scales in question. The purpose of an incremental salary scale is to recognise and reward service within an employment. Although originally confined to clerical/administrative workers, such scales became widespread among craftworkers from the early 1980s, with assimilated service pay schemes where they existed. The view of the unions is that where the base rate increases, the service pay element, should increase accordingly at each and every point. The net effect of the Company's actions in this case has been to increase from two to three the number of pay-scales applicable to a single grade. In shortening the scale, the Company is rewarding service in outside employment, which is at variance with the purpose of the scale.
4. Previous Labour Court recommendations established that the existing craft scale has a well-established basis and that an adjustment at one point logically causes consequential adjustments at all points (details supplied to the Court).
5. Under the provisions of the Transport (re-organisation of Coras Iompar Eireann) Act, 1986, it is illegal for the Company to vary or alter any scale, except by way of agreement with the Union concerned.
6. The Union group is mindful of the difficulties which the Company faces in recruiting and retaining craftsmen, and is anxious to enter into discussions with the Company to address the issue of craft pay in the context of a rapidly changing railway system.
COMPANY'S ARGUMENTS:
4. 1. The application of the 4th pay-point to new recruits and appointees was a modest pragmatic response to market pressures. Points 1, 2, 3 of the scale have not been eliminated but have been put into abeyance temporarily. While a small number of staff will benefit, temporarily, existing staff will suffer no detriment in what is an interim arrangement.
2. While the Company might have kept the Union side informed in relation to this matter the fact remained that the craft workers already in the Company were not affected by the change to the recruitment point on the pay scale.
3. The Company acknowledges that a further comprehensive review of the craftworker position is necessary and the Company is prepared to agree a framework and schedule for such a review and a part-basis for progressing matters has been agreed in June of last year.
RECOMMENDATION:
The Court has considered all the arguments put forward by both sides in this dispute. The Court notes the difficulties expressed by the unions regarding the Company's unilateral decision to change the recruitment policy of craftsmen and to bring in new entrants on the 4th point of the scale - an action which was taken in order to deal with the present labour market shortages. The agreement on the salary scale was entered into by both sides and the Court does not subscribe to any action by one side deciding to change that agreement, without the consent of the other side.
The Court recommends the following:-
- consolidation of the outstanding £10.11 into the scale from 1st September, 1999, for those craftworkers who continued to carry this payment as an off-scale payment since 1996.
- craftworkers who were never entitled to this off-scale payment, i.e., those who joined the Company since 1996, should be entitled to the consolidated rate from the date of acceptance of this recommendation.
- craftworkers who were on the 1st to the 3rd point of the scale at the introduction of the new entrants' rate (on 17th April, 1999), should receive an increase in their pay to bring them to the 4th point of the scale, with effect from 17th April, 1999.
The Court notes the attempts made to agree a process in order to reorganise and restructure craftworkers in the Company.
The Court reaffirms the Labour Relations Commission's proposal made on 21st June, 1999 (already accepted by both sides), of a jointly agreed IPC audit of the Vision of the Future Agreements, and recommends that this should take place prior to the productivity talks on a change agenda. The parties should, upon acceptance of this recommendation, enter into immediate negotiations on productivity talks on changes proposed by management.
The issue of the position of new entrants remaining on the 4th point of the scale for four years was raised at the Court hearing. The Court is of the view that this situation is anomalous and their future position should be addressed as part of these negotiations.
The Court recommends that these negotiations should be completed by the end of June, 2000.
Signed on behalf of the Labour Court
Caroline Jenkinson
30th March, 2000______________________
M.K./U.S.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Michael Keegan, Court Secretary.