FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : CONNEX TRANSPORT (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr McGee Employer Member: Mr Doherty Worker Member: Ms Ni Mhurchu |
1. Wage adjustments - Sustaining Progress
BACKGROUND:
2. The Company is contracted by the Rail Procurement Agency (RPA) to run the Luas public transport system for an initial period of five years commencing 28 September 2004. They employ approximately 150 people.
Under the terms of the contract with RPA the annual consumer price index (CPI) forms the basis for wage adjustments. The wage adjustments are made in January each year based on the previous year's CPI. In addition the Company has agreed with the Union that additional service increments are payable to staff each year on the anniversary of commencement dates.
The Union, on behalf of its members, raised the issue of non-payment of national wage agreement increases with the Company in 2004.
- The dispute could not be resolved at local level and was the subject of a conciliation conference under the auspices of the Labour Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on the 10th November, 2005, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 2nd March, 2006.
3. 1. The Union finds it difficult to accept that the RPA, a Government Body, can insert into a commercial contract to run a public transport operation a clause which ignores National Agreements.
2. The operation of the Luas has been a great success and the workers collective performance must be credited with some contribution to this success.
COMPANY'S ARGUMENTS:
4. 1. The Company receives annual revenue adjustments in line with CPI from the RPA. It cannot sustain any additional increases beyond that which is financed by the contract provider without a significant detrimental impact on costs.
2. The Company provides annual service increments to staff which, when combined with CPI increases, awards a significant pay increase to each staff member.
RECOMMENDATION:
The Court has considered the submissions of the parties on the question of the paragraph which is at issue.
The Labour Court regards the pay terms of National Agreements as representing the generally established pay norms for the periods in question. Regard should be had also, to the contractual agreement for operations made separately between Connex and the RPA (who are not before the Court but who should be made aware of the Court's view regarding National Agreements).
Bearing the above in mind, the Court does not feel that the parties have addressed the difference between them in any meaningful way or as set out in paragraph 17 of the Company/Union Agreement, which says, inter alia,
"The Company's contract with the RPA provides for revenue adjustments in line with CPI. The Trade Union expects wage adjustments to be in line with National Wage Agreements or other agreed pay norms. Any difficulty that may arise in this context will be addressed by the parties to provide an agreed and fair resolution to the matter of pay adjustment".
This clause is a statement of the position of the parties and is an agreement to resolve any difficulties on pay adjustments fairly and by agreement.
The Court, accordingly, recommends that the parties re-engage as per this paragraph in an attempt to resolve their differences.
Signed on behalf of the Labour Court
Raymond McGee
20th March, 2006______________________
CON/MB.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.