FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : LIMERICK COUNTY COUNCIL (REPRESENTED BY LOCAL GOVERNMENT MANAGEMENT SERVICES' BOARD) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Doherty Worker Member: Mr O'Neill |
1. 1. Voluntary severance/early retirement package 2. Compensation for loss of earnings 3. Status/Grade of three employees.
BACKGROUND:
2. The dispute before the Court concerns the issues as outlined above and the decision taken by Limerick County Council to privatize the refuse collection in its area. At present there are 14 workers employed in the service, 9 general operatives, 4 drivers and 1 supervisor.
The Union claims that management failed to cope with the competitive nature of the business and has orchestrated a situation whereby the service can no longer make a profit.
Management rejected the Union's claim and states that it had no option but to discontinue the service due to cumulative losses for 1998 - 2002 of €1.172m.
As the parties failed to reach agreement the dispute was referred to the Conciliation Service of the Labour Relations Commission. A conciliation conference was held but agreement was not reached. The dispute was referred to the Labour Court on the 29th July, 2003, in accordance with Section 26(1) of the Industrial Relations Act, 1990. The Court investigated the dispute on the 19th September, 2003.
Voluntary Severance/ Early Retirement Package
Union's Arguments:
3. 1.The terms of the Cork agreement is not acceptable to the workers. The workers want to maintain their jobs in the refuse collection service.
Management's Arguments
4. 1. Management has offered 5 weeks' pay per year of service inclusive of statutory entitlements.
2. There will be no enforced redundancies nor are the Council seeking voluntary redundancies, the offer of five weeks' pay per year of service is generous and should be accepted.
Compensation for loss of Earnings:
Union's Arguments
5. 1. The Union want staff who remain in the employment of the Council to retain their rate of pay on a red circle basis including the flexibility allowance for those redeployed.
Management's Arguments
6. 1. All employees in the refuse service are currently in receipt of an annual refuse allowance of €6,000 per annum. The Council has made an offer to compensate each individual opting for redeployment at 3 times the annual loss, totalling €18, 000 per worker.
Status/Grade of 3 Employees
Union's Arguments
7. 1. The Union seeks, that where the redeployment option is taken, that the 3 named individuals be redeployed on the basis of their successful interviews and driving experience, i.e. 1 acting supervisor position and 2 driving positions.
Management's Arguments
8. 1. Management rejects the Union's claim in relation to the 3 individuals. The Council is prepared to redeploy the workers concerned at their current grade.
RECOMMENDATION:
Having considered the submissions of the parties the Court recommends as follows:
Voluntary Severance Terms.
The Court recommends that the same terms as those offered by Cork City Council in its letter to SIPTU of 5th March 2003 should be offered to those opting for voluntary severance.
Flexibility Allowance.
The Court recommends that the Council's offer in respect of the buy-out the flexibility allowance be accepted but that it should not take effect until 1st January 2004. In the interim those holding the allowance should retain it on a personal basis.
Position of Three Named Individual.
The Court recommends that the Council should ensure as far as possible that those individuals named by the Union are redeployed in positions which approximate to those to which they were appointed or were due to be appointed in the refuse service.
Signed on behalf of the Labour Court
Kevin Duffy
16th October, 2003______________________
`LW/LWDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Larry Wisely, Court Secretary.