FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : CORK COUNTY COUNCIL - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Grier Worker Member: Mr O'Neill |
1. Loss Of Overtime - Compensation.
BACKGROUND:
2. In 2003 a review of operations was undertaken by Cork County Council in order to save money and avoid a financial crisis. As a result of this review it was decided to close the Machinery Yard, North Cork on Saturdays and to have a 6.15pm weekday closing. For the Claimants this meant a loss of earnings due to a substantial reduction in overtime available.This amounted to 400 hours overtime at a rate of double time lost to the staff concerned. Currently the Claimants work 46¼hours every week. This is inclusive of 7¼hours overtime per week. Cork County Council remains in a poor financial situation and unable to restore the lost overtime hours.
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 could not be reached, the dispute was referred to the Labour Court on 30th May 2006, in accordance with Section 26(1) of the Industrial Relations Act, 1990.
A Labour Court hearing took place on 21st March, 2007.
UNION'S ARGUMENTS:
3.1Due to cutbacks made since 2003, Cork County Council have made substantial savings while the Claimants have suffered severe loss of earnings. The Council have refused to pay compensation for the loss of earnings even though there is precedence to do so from similar cases.
2 The County Council do not contest the fact that the overtime was regular and rostered. When any of the staff concerned went on holidays, Saturday pay was reflected in their holiday pay. The County Council must find money from their budget to compensate the staff concerned.
COMPANY'S ARGUMENTS:
4. 1 Cork County Council remains in a poor financial position. Since the initial Agreement between the parties, the Council have widened the overtime hours available. Overtime is not part of staff contracts in this case.
2 Any Compensation paid to these members of staff would have major cost implications for the County Council. It could also have the effect of generating significant claims from other areas of the Council.
RECOMMENDATION:
The Court notes that the overtime at issue was regular and rostered. It is also agreed by the parties that the overtime at issue involved the workers concerned working hours in excess of the maximum permitted under the Organisation of Working Time Act, 1997.
The Court is satisfied that in the circumstances of this case the Union has a well founded claim for compensation arising from the loss of earnings involved. However, in the Court's view in calculating the loss involved, hours in excess of the statutory maximum should be disregarded. The loss so calculated should be compensated at twice its annual value.
Signed on behalf of the Labour Court
Kevin Duffy
12th April 2007______________________
dnChairman
NOTE
Enquiries concerning this Recommendation should be addressed to David P Noonan, Court Secretary.