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 IRISH MUNICIPAL, PUBLIC AND CIVIL TRADE UNION UNITE TECHNICAL, ENGINEERING AND ELECTRICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Ms Doyle Worker Member: Mr Nash |
1. Payment of increments.
BACKGROUND:
2. The Dublin Airport Authority (DAA) manages and operates Dublin, Cork and Shannon Airports. The DAA has been in consultation with its staff since late 2008 about the need to reduce operating costs. On 10th February 2009 all the Unions attended a DAA presentation entitled "Cost Recovery Initiatives" and it was decided at this meeting to set up a number of cost consideration groups to examine ways of savings up to €25 million in operational costs for the Authority. These groups were due to report to senior management in mid April 2009. During the course of consultation with the Unions it was proposed that one method of reducing costs might be to withhold the annual increments due from 1st April 2009. Non-payment of increments will save the Authority between €3-€4 million in a financial year. The Unions vigorously oppose this suggestion and threatened industrial action unless all increments due are paid and backdated to 1st April, 2009.
The dispute could not be resolved at local level and was the subject of two Conciliation Conferences under the auspices of the Labour Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on the 8th April, 2009, in accordance with Section 26(1) of the Industrial Relations Act, 1990.
A Labour Court hearing took place on the 29th April, 2009.
UNION'S ARGUMENTS:
3. 1. To unilaterally cancel all wage increments when they fall due is clearly a breach of Agreements. This would be unfair and inequitable as it would effect 60% - 70% of staff, those at the top of their pay-scale would be unaffected.
2. The Authority cannot rely on any form of inability to pay mechanism, as over the past 9 years it has made over €400 million after tax, even after exceptional items are included.
AUTHORITY'S ARGUMENTS:
4. 1. The Authority is only asking that the annual pay scale increments due to have been paid in April 2009 be deferred, pending the completion by the DAA of a strategic plan to address the shortfall of €60-€70 million.
2. Failure to address this shortfall could result in the Authority losing control of its affairs (through default of its debt obligation) and large scale restructuring of activities to reduce costs. It is most likely that a combination of staff reduction, pay cuts and an alteration of the terms and conditions of employment will be required to achieve goals as set out in the Cost Recovery Plan.
RECOMMENDATION:
As indicated to the Court, the Authority accepts that in the absence of final agreement to do otherwise the increments at issue will be paid. It seems to the Court that, having regard to the current position adopted by the Unions, the prospect of reaching agreement to forgo these increments is remote.
In these circumstances, and in return for a clear commitment by the Unions to engage positively with the Authority on means of achieving the overall cost reductions proposed, the increments at issue should now be paid. However, the Unions should also accept that alternative cost reductions, of similar value to the increments, will be identified and implemented in the proposed negotiations on cost savings.
Signed on behalf of the Labour Court
Kevin Duffy
1st. May, 2009.______________________
JF.Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to John Foley, Court Secretary.