FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : BUS EIREANN - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION NATIONAL BUS AND RAIL UNION DIVISION : Chairman: Mr Duffy Employer Member: Ms Doyle Worker Member: Ms Ni Mhurchu |
1. Hearing Arising From LCR19628.
BACKGROUND:
2. This dispute concerns the Company's Cost Recovery Plan and was the subject of Labour Court Recommendation LCR19628, which recommended that the parties enter into discussions facilitated by an independent chairman. As agreement was not reached on all aspects of the Company's proposal, the dispute was referred back to the Labour Court on the 23rd October, 2009, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 13th November, 2009, the earliest date suitable to the parties.
UNIONS' ARGUMENTS:
3. 1. Although the Unions accept that the general economic downturn has seriously effected the Company, it believes that the Workers are being asked to bear a disproportionate share of the cost reductions sought.
2. The Workers have already made significant concessions to the Company.
3.The Company should not be focusing on withdrawing services and cutting drivers' terms and conditions of employment.
COMPANY'S ARGUMENTS:
4. 1. The Company must make significant savings across all areas of its business.
2. The Company has suffered heavy financial losses due to a substantial reduction in passanger numbers.
3.The Company's Cost Recovery Plan is essential to ensure that as many jobs and services are maintained as possible.
RECOMMENDATION:
The Court has taken full account of the submissions of the parties made at the hearing of 25th August 2009 and at the reconvened hearing of 13th November 2009. The Court also had the advantage of a report prepared by the Independent Chairman who facilitated the negotiations between the parties recommended in LCR19628.
It is clear to the Court that the current financial circumstances of the Company are perilous. It is equally clear that radical cost saving measures are necessary to restore the viability of the business and maintain the employment which it supports. Progress was made in the facilitated negotiations between the parties which will help in achieving that objective. However, the Court is satisfied that the implementation of what has been agreed will not be sufficient to secure the future of the Company. It follows that further adjustments are necessary.
It is against that background that the Court makes the following recommendations:-
Voluntary Severance
The Court recommends that the Company’s offer on voluntary severance be accepted. For the avoidance of doubt the Court wishes to make it clear that these terms are being recommended for acceptance on the understanding that the scheme to which they relate will operate on a purely voluntary basis.
Pay
The Court recommends that a pay freeze operate up to end 2010. The position should then be reviewed having regard to the circumstances of the Company at that time. Regard should also be had to the terms of any agreement on pay then in place between Social Partners.
Self-Certified Sick Leave
The Court recommends that the Company’s proposal be modified so as to provide for four days self-certified sick leave, with the proviso that self-certification can only apply in respect of a Saturday on no more than one of the four days. The Court further recommends that where a Company designated Doctor is not available on a Saturday, an employee who obtains a medical certificate from another Doctor on that day, should have the appropriate fee reimbursed on production of a receipt.
Compensation for Loss of Earnings
Having regard to the financial circumstances of the Company the Court does not recommend concessions of the Unions’ claim for compensation for loss of earnings.
Disturbance Allowance
The Court recommends that the Company’s final proposal on disturbance allowances be accepted.
Shift Payment
The Court recommends that, subject to all other aspects of this Recommendation being implemented in full, the Company should withdraw its proposal to alter the current rate at which shift payments are made.
Rota Allowance
The Court recommends that, subject to all other aspects of this Recommendation being implemented in full, the Company should withdraw its proposal to alter the current rate of Rota Allowance.
Income Continuance Scheme
The Court recommends that the Company continue to subsidise the income continuance scheme at the current level.
Two Person Operation Staff
The Court recommends that the Company’s proposal for the discontinuance of the compensation package for TPO staff who do not operate the OPO system, be accepted.
Other Issues
Subject to the modifications provided for by this Recommendation, the Court recommends that the Company’s final position, as set out in its document dated 19th October 2009, be accepted in full.
Having regard to the current financial circumstances of the Company, and the urgent need to achieve the target savings, the Court urges the parties to make an early decision on this Recommendation and to implement the terms recommended without delay.
Signed on behalf of the Labour Court
Kevin Duffy
23rd November, 2009______________________
JMcCChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Jonathan McCabe, Court Secretary.