FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : AER LINGUS - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Flood Employer Member: Mr Pierce Worker Member: Mr. Somers |
1. Pay, contracts and pensions.
BACKGROUND:
2. The claim affects approximately 1540 permanent Cabin Crew workers, 193 Cabin Crew on temporary 20-hour contracts, and 91 Cabin Crew on permanent 20-hour contracts. The Company had already met with SIPTU to discuss the same issues at the Labour Relations Commission earlier in the year, and IMPACT became involved in October, 2000. The parties met on a number of occasions with the Labour Relations Commission between October and November, 2000, but agreement could not be reached and the dispute was referred to the Labour Court on the 5th of December, 2000, in accordance with Section 26(1) of the Industrials Relations Act, 1990. A Labour Court hearing took place on the 13th of December, 2000, at which the Union made its claims on the 3 issues - pay, contracts and pensions. Following subsequent discussions with the parties, the Court proposed that further clarification discussions take place under the auspices of the Labour Relations Commission.
3. The claim is as follows:-
Pay
For a significant increase in pay, reduction in scale points, and increases in promotional posts and differentials.
Contracts
The Union is seeking to end the current part-time, permanent and temporary recruitment policy.
Pensions
The Union is seeking major changes in the pension arrangements, including the option of retirement at age 50.
4. The Company indicated a willingness to address the pay, contracts and pensions issues, subject to agreement on flexibilities as summarised below :
(a)Transatlantic duties
The Company seeks to change the current agreement to permit the following;
_ When a rostered transatlantic duty is not operated, then the normal weekly days off will apply i.e. two days off per week.
_ Where a rostered transatlantic duty is not operated, the Company may re-allocate duties within roster planning limitations.
(b) Rolling roster pattern of 3-2-3-2
The Company proposes that the pattern of days off after transatlantic duties should roll on a continuous 3-2-3-2 pattern from one roster period to the next.
(c) Variable crewing
The Company requires a minimum crew arrangement in certain circumstances on domestic legs of transatlantic flights as follows;
(i) Where a full crew change occurs before or after the domestic sector.
(ii) In extreme circumstances on the day of operation to protect the schedule or avoid a cancellation. The additional crew members to be added at the transit point. The Company claims that current reserve levels at both Shannon and Dublin adequately cover this scenario.
(d) 9th day
The Company is proposing that the 9th day will not apply to temporary or new permanent contract staff.
(e) Early starts/late finishes
The Company believes that changing trends in the Irish Business environment have meant that the service industry must extend its hours of operations to meet commercial requirements. It is seeking the extension of the finish time before a day off from 22.00 to 23.00 hours, while not reducing the current total number of hours in the rest period , and that early duties following a day off may commence at 6 a.m.
(f) Coupling
The Company states that the current arrangement has restrictions that inhibit the Company's ability to optimise crew resources, primarily on early morning flights. It has proposed as changes;
| Restriction | Current Dublin | Current Cork/LHR/SNN | Proposed (All Bases) |
| 06.00 - 06.30 after day off | 1 departure from base | 1 departure from base | No change |
| 636 not coupled | Applies | N/A | No change |
| Chock to chock max 5 hrs per flt | Applies | No restriction | No restriction |
| Mainline IT Charters | Applies | No change | No change |
| 01.00 - 06.00 (no coupling) | Applies | Applies | Max 9 hrs - 3 sectors |
| 06.00 - 06.30 | 7 hrs chock to chock | 9 hrs chock to chock | 9 hrs chock to chock |
| Max duty time 12 hrs | Applies | No restriction | No change |
(g) Public holidays
The Company has proposed changes as follows;
| Category | Now | Proposed |
| Current Permanent | 2 Lieu days allocated within 2 months - if not allocated, added to following year's annual leave | Optional buy-out - individual will have option in respect of 5 Public Holidays to choose: (1) 2 Days pay (2) 1 Days pay - 1 day in lieu to be allocated within 6 months or paid if not allocated (3) 2 Days lieu - 1 day allocated within 1 month and 1 day allocated within 6 months or paid if not allocated |
| Temporary Staff | 2 days pay | Pay or lieu time allocated at Company discretion |
| New Permanent | 2 Lieu days allocated within 2 months - if not allocated, added to following year's annual leave | Pay or lieu time allocated at Company discretion in the first 5 years of service. After 5 years options as set out for current permanent staff above to apply to all Public Holidays. |
(h) Training for all aircraft types
The Company continues to have a requirement to recruit temporary cabin crew. It requires the flexibility to train Dublin based temporary employees for all aircraft types as required on entry, in order to have a better mix of experience on all of its routes.
(i) Annual leave
For new employees, the Company is proposing 24 days' annual leave, stating that it has incorporated a payment equivalent to 2 days' pay in its proposed new scale. Twenty four days covers basic annual leave of 20 days' leave plus 4 days for the Company holidays on Good Friday and Christmas Eve.
UNION'S ARGUMENTS:
5. 1. Group gave more than anyone else in Cahill Plan.
2. The Company has accepted that low pay is an issue and increases should be paid without flexibilities.
3. Other groups have been given substantial increases for significantly less than is being sought from cabin crew.
4. Flexibilities being sought affect the lifestyle of the cabin crew members in a negative way.
5. Part time contracts are unacceptable.
COMPANY'S ARGUMENTS:
6. 1. The Company can only address Union claims if flexibilities are agreed in return.
2. The Company offers on pay and contracts involve significant financial cost.
3. The Company proposals concentrate on the key issues as identified by the Union - low pay and 20-hour contracts.
4. The Company must continue to be competitive in order to remain commercially viable.
5. The current agreement in many situations prevents the Company from maximising it resource.
RECOMMENDATION:
Comprehensive written and oral submissions were made by the parties. The claims before the Court relate to pay, contracts and pensions. The Company indicated willingness to address these issues, but only in the context of flexibilities in return.
Having had detailed discussions with the parties following the Court hearing, the Court recommended that the parties enter into intensive clarification discussions at the conciliation service of the Labour Relations Commission.
Following these discussions, the Court received a Report from the Industrial Relations Officer and written position papers from the parties.
In considering this dispute, the Court is conscious of the view held by the Cabin Crew that it was the major contributor to the 1993 Cahill Plan, and its belief that it is now being asked to contribute more than any other group has given in recent agreements.
They further argue that the Company proposals are life style issues for them that will seriously reduce their days off and free time.
The Company, for its part, argues that it is operating in an extremely competitive market, that its offer on salaries will increase its costs significantly, and that the change from hourly paid to permanent status has major cost implications. It argues that some current agreements and practices limit its ability to maximise its resources and to meet the requirements of a modern business when servicing its customer needs.
It proposes that new permanent employees would have different conditions to current employees. In relation to comparison with other Groups, the Company has argued forcefully the merits of each deal.
The Court accepts that the Company proposals as presented would have a significant effect on the life style and free time of Cabin Crew if implemented as proposed. However, the Court does not feel the same arguments can be made for future employees, as they will not have enjoyed the benefits of these agreements but will receive the new improvements in pay and conditions.
The Court, in considering its recommendation, has taken into account the arguments made by both sides, and believes its recommendation to be a reasonable response to those arguments.
The Court recommends as follows:-
Improvements in Pay and Conditions:
A New pay scale to run from £13,000 to £22,500 in equal increments over 15 points. The second and third phases of the P.P.F. will apply to this scale.
B Long Service Increments of £500 p.a. at 25,30, and 33 years, and £1000 after 35 years service.
C Current permanent staff to receive an increase of £2000 p.a. over present salary point, and to move to the next highest point on the new scale after this adjustment. Where necessary for individuals at or near top of scale, part of the L.S.I.’s to be advanced to allow the £2000 increase to be paid.
D Implementation of pay scales to be backdated four months from date of acceptance of recommendation.
E Existing part-time permanent and temporary staff to be appointed to full-time contracts.
F Temporary service will be recognised for staff travel, annual leave, and incremental purposes from the last date of temporary entry prior to permanent placement after 1 April 1994.
G 30 Cabin Crew to be promoted as additions to the Senior grade.
In return, the Court recommends as follows on the Company's proposals:-
Variable crewing
The Company proposals on crew numbers for domestic legs of T/A. flights to be accepted, but the Union requirements on manning grades to apply.
In relation to the proposal in extreme circumstances to add additional crew members at transit point, this should only be done after the Company has confirmed that reserves are available at transit base. The Court notes the Company commitment to ensure that the required crew briefing is addressed in such circumstances.
Coupling
The modified Company proposal on coupling to be accepted. However, the Court, in making this recommendation would expect that the Company, in operating this proposal, would do so in a reasonable manner.
Transatlantic duties
The Court recommends acceptance of the Company proposals in relation to eliminating rostering restriction that apply to Cabin Crew members who do not travel on a planned transatlantic duty, subject to the following:
- The current arrangements to continue to apply in cases where a trip does not take place due to technical reasons.
- where a trip does not take place due to illness or an Act of God, current permanent employees to have the option of taking planned days off, and subsequently having these days substituted for their days in lieu or annual leave.
Training
The Company requirements for training on all aircraft types to be restricted to 50% of the temporary staff.
Annual leave
The current annual leave arrangements to be maintained for all present and future staff.
Rolling 3-2-3-2
Company proposals that the 3-2-3-2 roster be operated on a continuous rolling basis to be implemented, but current rostering arrangements to continue for current permanent staff.
9th day/Early /late starts,/public holidays
Company proposals to apply for temporary staff and new permanent full-time staff. Current permanent staff to have the option on a voluntary basis of a buy-out of these items, in line with the Company formula.
Conclusion
The Court notes that the parties have agreed to review In-week Special Leave, Credits, and Away from base allowances outside of these negotiations and to continue negotiations on pensions at the level of conciliation, and to refer the matter separately to the Court, if required, at a point in the near future.
The Court, in making its recommendation, has endeavoured to address the major concerns of the Union as outlined - pay, part-time contracts and working conditions, while also addressing the Company requirements for flexibilities to enable the Company to operate more efficiently, given the competitive nature of its business.
Signed on behalf of the Labour Court
Finbarr Flood
22 January, 2001______________________
CON/CCfChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.