FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : GALWAY CO. COUNCIL (REPRESENTED BY LOCAL GOVERNMENT MANAGEMENT SERVICES BOARD) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Murphy Worker Member: Mr Nash |
1. Termination of employment of 32 temporary employees; cutting allowances and travelling expenses of other employees.
BACKGROUND:
2. As a result of Government measures to reduce spending Galway County Council has had to implement cutbacks in staffing numbers and also in relation to unworked and other overtime payments. In particular Local Authorities were obliged to achieve a saving of 3% on their payroll costs. As a result of this government directive the Trade Unions representing the sector sought to engage with management through the Local Authority National Partnership Advisory Group (LANPAG).
Following a meeting on the 30th September 2008 between the GMSB and LANPAG a number of areas were identified which it was agreed could be examined at local level in each Authority. The areas identified were included, but not confined to, non-renewal of contracts for temporary and contract workers and reduction of premium pay and overtime.
These cuts in funding have been blamed by the Council for the dismissal of up to 50 Union members and changes in working conditions and cuts in allowances of approximately 100 staff. The Union does not accept the way in which Galway County Council as an employer is implementing the cuts.
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 2nd June 2009, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 13th July, 2009.
UNION'S ARGUMENTS:
3. 1. The Union contends that redundancy should have been on a voluntary basis as had been the practice in the past. The Council had let go workers on a 'last in/ first out' basis whose fixed-term contracts had expired. The Union maintains that there were other people who would have volunteered to take redundancy.
2. Workers who drive vans and pick-ups for the Council previously received a one-hour payment for driving the van prior to normal starting time, arriving at the workplace loaded with tools and having picked up other workers en route. The Council now expect drivers to undertake the same duties but without receiving the hour's pay.
3. Lorry drivers also received a one-hour payment per day for greasing and carrying out minor repairs to their vehicles so that they could start work at the normal starting time of 8 o'clock. The Council has withdrawn the payment for the one hour but still expect the same functions to be carried out.
4. Following discussions in January 2009 General Services Supervisors agreed to a 20% reduction in the level of mileage they were doing. Subsequently the Department of the Environment reduced the rates paid per mile by 25%. The Supervisors are no longer willing to give the 20% reduction in the number of miles and are seeking to be paid for all miles driven in the course of work.
MANAGEMENT'S ARGUMENTS:
4. 1. Galway County Council is facing a significant change in the economic climate in which it is working but is committed in so far as it can to maintaining employment for all permanent staff and to maintaining basic pay levels for those staff. The Council employed a number of fixed-term workers across the Authority. As these contracts came to a natural expiry or the purposes for which these staff have been employed have come to an end the Council have terminated those contracts in accordance with their own terms.
2. Management maintains that the actions taken by the Council to date are required in order to address the serious financial situation in which it is operating. The overall reductions in staff numbers, the minimisation or elimination of overtime, the reduction in travel costs and the redeployment of staff are all required if the Council is to maintain its services to the public and remain within budget.
3. Management submits that the Council has acted fairly and reasonably in all the circumstances facing it.
RECOMMENDATION:
It appears to the Court that a general framework has been established through the LANPAG within which savings in staff costs in Local Authorities can be implemented. While the list of areas that can be considered is comprehensive it is not exhaustive.
In considering the issues giving rise to this dispute the Court considers it appropriate to examine each of the areas in which the Council proposes to effect savings and to establish the extent to which they are in line with the agreed framework. On that basis the Court recommends as follows:-
Non –renewal of fixed term / temporary contracts
The agreed framework provides that savings can be achieved by the non-renewal of fixed-term or temporary contracts. Accordingly, the Court recommends that where fixed-term or fixed-purpose contracts expire by effluxion of time, or the completion of the purpose for which they were concluded, their non-renewal should be accepted.
It is noted that the Council has indicated that should future suitable vacancies arise those displaced will be advised and given an opportunity to apply.
Allowances / non-worked overtime
The Court is satisfied that the payments in issue, which are described as overtime, are in reality allowances for the performance of additional duties. It is noted that the agreed framework does not expressly provide for the discontinuation of allowances in circumstances where the duties for which they are paid continue to be performed. Having regard to the fact that the duties for which the disputed allowances are paid continue to be undertaken (and no agreement has yet been reached to discontinue those duties) the Court recommends that the allowances be restored.
Travel allowance
The Court recommends that staff be paid, at the appropriate approved rates, for all travel undertaken by them in the course of their employment. In so far as staff may have been required to undertake travel without payment of the approved allowances, the Court recommends that these be restored.
Code of Practice on Essential Services
The statutory Code of Practice on the maintenance of essential service should be fully observed in all situations to which it applies. The Court recommends that this be accepted and observed by all parties.
Signed on behalf of the Labour Court
Kevin Duffy
17th July, 2009______________________
MG.Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Madelon Geoghegan, Court Secretary.