FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : EIRCOM - AND - COMMUNICATIONS WORKERS UNION CIVIL AND PUBLIC SERVICES UNION PUBLIC SERVICE EXECUTIVE UNION IRISH MUNICIPAL, PUBLIC AND CIVIL TRADE UNION DIVISION : Chairman: Mr Flood Employer Member: Mr Pierce Worker Member: Mr. Somers |
1. Motor Mileage Allowance.
BACKGROUND:
2. The claim concerns approximately 1450 workers who occasionally use their cars on Company business. Historically motor mileage rates have moved in line with Civil Service rates and are reviewed regularly. The most recent increase agreed in Eircom, adopted in December, 2000, was in respect of the Civil Service increase which was effective from 1st January, 1999. The agreement precluded any further adjustment until January, 2001. In October, 2001 agreement was reached in the Civil Service on the rates to be applied with effect from 1st January, 2001. The Unions submitted a claim for an increase in the mileage rates based on the Civil Service increases. Management rejected the claim. The dispute was referred to the Labour Relations Commission. A conciliation conference was held but agreement was not reached. On the 18th February, 2003 the dispute was referred to the Labour Court by the Labour Relations Commission in accordance with Section 26 (1) of the Industrial Relations Act, 1990. A Court hearing was held on the 3rd April, 2003.
UNIONS' ARGUMENTS:
3. 1.Motor mileage rates that are paid in Eircom, since its establishment in 1984, have always moved in line with Civil Service rates.
2.Since the last review in Eircom there have been two reviews in Civil Service mileage rates i.e. 1st January, 2001 and 1st January, 2002.
3. A failure to review mileage rates w.e.f. January, 2000, and January, 2002, in line with the long established practice of reviewing those rates on foot of Civil Service adjustments, means that Eircom staff are effectively being asked to subsidise the Company when required to use their own cars on Company business.
4.Eircom staff have guarantees in legislation that they cannot be brought to less beneficial terms and conditions of employment unless a collective agreement is made to that effect. No such agreement has been made.
COMPANY'S ARGUMENTS:
4. 1.The Company does not accept that the claimants have a right to Civil Service mileage rates. Eircom has moved from Civil Service to Semi State Company to PLC and to the status of a Private Company. Linkages to Civil Service rates are no longer relevant.
2.Between 1984-1989 (before National Agreements arose) the Company and Unions negotiated grade structures and pay rates in Eircom that were better than Civil Service analogues. In principle the Unions have accepted non alignment with the Civil Service.
3.Eircom is a private company operating in a very competitive market and any increased costs, as represented by this claim, would have an adverse affect on the Company.
4.The mileage rates presently paid in Eircom are above the market rate obtaining in the private sector.
RECOMMENDATION:
The Court has considered carefully the written and oral submissions made by the parties.
Management have argued that there is no basis for concession of the Unions' claim on commercial grounds and that any such concession would lend weight to the erroneous view that there is a direct link to the Civil Service payments system in relation to mileage.
The Unions argue that they have had a long established practice of having their motor mileage reviewed on foot of Civil Service adjustments.
The Court is conscious of management's arguments in relation to the competitive market in which they operate and their requirement to operate in a commercial fashion.
However, the Court is also conscious that up to now the allowances have been linked to the Civil Service and that there is no agreement to break away from such a link.
The Court recommends, given the history and background to this claim, that the Company pay the rates, as heretofore, in line with the Civil Service reviews, for January, 2001, and January, 2002, subject to the Unions accepting that the linkage no longer applies and that there will be no further increases in the rates until an agreement is reached on a new method of reviewing the mileage rates.
Signed on behalf of the Labour Court
Finbarr Flood
7th May, 2003______________________
TOD/BRChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Tom O'Dea, Court Secretary.