FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : DUBLIN AIRPORT AUTHORITY - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION MANDATE DIVISION : Chairman: Mr Duffy Employer Member: Ms Doyle Worker Member: Mr Nash |
1. Yearly staff bonus- reduced hours payment.
BACKGROUND:
2. The Dublin Airport Authority (DAA) and the Unions have had a bonus scheme in place since 1990. The DAA determines the amount of the bonus annually and pays it to most categories of staff when finances allow. Several revisions have occurred over the years but in essence the scheme is a calculation methodology paid to staff irrespective of employment status, subject to satisfactory attendance levels.
In October 2008 the DAA were asked by SIPTU what the bonus for 2008 would be and the DAA advised that the estimated bonus of €1,200 would be paid to full-time staff with part-time staff getting the payment on a pro-rata basis.
The Union informed the Company that reduced hours members had always received the full financial amount that fell due for the yearly bonus.
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 3rd April, 2009, in accordance with Section 26(1) of the Industrial Relations Act,1990. A Labour Court hearing took place on the 18th August, 2009.
UNION'S ARGUMENTS:
3. 1.In all previous years the Company have paid, in full, the calculated bonus to all staff irrespective of their contracted hours.
2. On this occasion, the Company abandoned reasonable and understood practices by unilaterally and arbitrarily implementing change which created financial anxieties for hundreds of reduced hours employees of the DAA.
3. Nowhere in the original agreement or any revisions since then has there been any mention of pro-rata bonus payment for reduced hours or part-time employees.
COMPANY'S ARGUMENTS:
4. 1.The Company contends that the payment of the same bonus to part-time and full-time staff is inherently unfair and unreasonable in that it fails to have regard to the relative contribution in terms of working hours.
2.The Company reviews the bonus annually and maintains that it is entitled to change the basis to ensure fairness and equality of treatment based on hours worked and to ensure equality of treatment between contract and permanent employees.
3.On receiving notice of the Unions objection to the method by which the Company proposed to split the bonus pool the Company were prepared to change the basis on a once-off basis while it addressed the essential point in relation to fairness of treatment. This too was unacceptable to the Unions.
RECOMMENDATION:
It is clear to the Court that the bonus in issue is provided for in a collective agreement between the parties. It is further clear that while the amount to be paid is within the discretion of the Authority the criteria to be used in calculating the amount payable and the distribution of that amount amongst participating staff is governed by the agreement and established custom and practice.
The Court is satisfied that all staff had a legitimate expectation that, in the absence of agreement to do otherwise, the bonus in 2008 would have been distributed equally as it had in previous years. The Court believes that the Authority acted inappropriately and contrary to the relevant agreement in departing from the established practice in treating full-time and part-time staff differently.
In the circumstances the Court recommends that part-time staff be paid the same amount as was paid to full-time staff in respect of 2008 in line with established and agreed practice. In the event of a bonus becoming payable in 2009 the parties should have discussions with a view to reaching agreement on its distribution. In these discussions the parties should have full regard to the provisions of all relevant legislation.
Signed on behalf of the Labour Court
Kevin Duffy
20th August, 2009______________________
MG.Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Madelon Geoghegan, Court Secretary.