FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 13(9), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : AER RIANTA/DUBLIN AIRPORT AUTHORITY (REPRESENTED BY BCM HANBY WALLACE) - AND - A WORKER (REPRESENTED BY SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION) DIVISION : Chairman: Mr Duffy Employer Member: Mr Doherty Worker Member: Mr O'Neill |
1. Appeal of Rights Commissioner's Recommendation Ir-14585/03/MR.
BACKGROUND:
2. The worker took up employment with the Company (Aer Rianta/ DAA) in October, 1969. The Company was responsible for the management of Bunratty Castle Banqueting Activities during the 1970s and 1980s. In November, 1990, management of the Banqueting Activities was transferred to Shannon Free Airport Development Company Limited (Shannon Development), and a subsidiary company - Shannon Castle Banquets and Heritage Limited (Shannon Heritage) - was to manage members of Aer Rianta/DAA, including the worker concerned, who had transferred to Shannon Development. These members would retain their status and basic conditions of service that they had enjoyed with Aer Rianta/DAA. However it was agreed in January, 1993, that any subsequent developments regarding terms and conditions for the seconded staff would be between Shannon Heritage and the Union.
At the time of the transfer in 1991 Aer Rianta/DAA staff were in receipt of a bonus which paid out during the summer and at Christmas. In 2001, following negotiationswith the Union about productivity agreements , the Company stopped payment of the Summer bonus. The Union's case is that other workers had the Summer bonus built in to their new pay scales but that the worker concerned was not included in this deal and, as a result, lost his Summer bonus. The worker approached Shannon Heritage's management about the situation and also discussed the possibility of moving onto the Shannon Heritage pay scale which was more attractive to him than the Aer Rianta/DAA scale. In the event, the worker moved to the Shannon heritage pay scale with effect from 1st July, 2001.
The worker referred his case to a Rights Commissioner and his recommendation was as follows:
"Accordingly, I now formally recommend that the Dublin Airport Authority, Shannon Division, should agree to pay the worker a once-off lump sum of €3,750 as claimed by the Union, and that the parties should agree to meet at an early date to discuss the application of this allowance in future years."
The Company appealed the recommendation to the Labour Court on the 28th of September, 2006, in accordance with Section 13(9) of the Industrial Relations Act, 1969. A Labour Court hearing took place on the 26th September, 2007, in Limerick.
COMPANY'S ARGUMENTS:
3. 1. The Company is absolutely clear that the worker understood the circumstances of his transfer to the Shannon Heritage pay scale. The new pay package was worth considerably more to him than his Aer Rianta/DAA pay, in that his salary went from €23,634 to €26,865, an increase of 13.66%. The bonus in 2000/2001 was only worth between €600 - €700. He also has scope to move up the new pay scale whereas he was already at the top point of his Aer Rianta/DAA scale.
UNION'S ARGUMENTS:
4. 1. The worker's Summer bonus was unilaterally withheld by Aer Rianta/DAA. There was no reference made about it when he discussed the terms of his new pay scale with Shannon Heritage.
2. The worker is now on Shannon Heritage terms and conditions yet he still retains the Christmas bonus as well as various other concessions he had with Aer Rianta/DAA.
DECISION:
It is apparent that the parties have different understandings as to whether or not the Summer bonus was to be incorporated in the pay increase granted to the Claimant in 2001. In these circumstances the Court can only proceed on the basis of what is fair and reasonable in all the circumstances.
It is noted that all Aer Rianta /DAA staff had the relevant bonus incorporated in their salary at a value of €950. In effect all Aer Rianta / DAA received a pay increase in consideration of relinquishing their entitlement to the bonus. The Claimant likewise received a pay increase which was in fact significantly greater than that paid to Aer Rianta /DAA employees.
In these circumstances the Court is of the view that it is not unreasonable for the Company to treat the bonus as having been incorporated in the Claimant's pay, as was the case with all other Aer Rianta /DAA staff.
In these circumstances the Court must disagree with the conclusion and recommendation of the Rights Commissioner. Accordingly, the Court allows the Company's appeal and the Recommendation of the Rights Commissioner is set aside.
Signed on behalf of the Labour Court
Kevin Duffy
11th October, 2007.______________________
CON.Chairman
NOTE
Enquiries concerning this Decision should be addressed to Ciaran O'Neill, Court Secretary.