FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : TULLAMORE TOWN COUNCIL (REPRESENTED BY TULLAMORE TOWN COUNCIL) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Doherty Worker Member: Mr O'Neill |
1. Compensation for loss of overtime earnings.
BACKGROUND:
2. The case is a 'loss of earnings' case and concerns a Worker who is employed as a Craftsman Mate (Mr W) and an another who is employed as a Plumber (Mr B), both of whom were transferred out of the Water Section after a decision by the Offaly County Council to outsource the maintenance function to indirect labour. Both men were employed by Tullamore Town Council when the service was initially transferred to the County Council, no objections were raised as both understood that their overtime was guaranteed, in fact it was believed that both would still be required to do the same work as there is an arrangement between the Town and the County Councils allowing Employees to transfer from one Employer to the other.
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 21st April, 2009, in accordance with Section 26(1) of the Industrial Relations Act, 1990.
A Labour Court hearing took place on the 13th October, 2009.
UNION'S ARGUMENTS:
3. 1. The Union recognise that the current economic situation is such that Local Authorities have a difficulty in securing finance at a level previously available in order to address matters such as this.
2. The compensation sought is twice the annual loss of the overtime, which is the norm in circumstances similar to this dispute.
3.Both claimants worked approximately 2 Saturdays out of every 3, so it would be incorrect to suggest that the overtime was never regular or rostered.
COMPANY'S ARGUMENTS:
4. 1. On foot of a Government decision, water/sanitary services were transferred from Tullamore Town Council to Offaly County Council in April / May 2008. As a result of this transfer the requirement for overtime was eliminated, which was always of an ad hoc nature and accordingly did not meet the parameters for a loss of earnings claim.
2. In line with the National Framework Agreement the Council must curtail all overtime deemed not to be of an essential or of an emergency nature.
3.Concession of this claim will inevitably lead to claims from other staff, not only locally but in other Local Authorities whose overtime has been reduced or eliminated.
RECOMMENDATION:
In the Court's view the loss in earnings upon which this claim is based is distinguishable from loss associated with the reduction in overtime attributable to budgetary constraints being experienced by all local authorities. In this case the Union's claim relates solely and exclusively to loss associated with the transfer of work, in which the Claimants were previously engaged, to another Local Authority and then to a private contractor. Moreover, the overtime was regular and, in effect, rostered. It also accounted for a significant proportion of the overall earnings of those associated with the claim.
In these circumstances the Court is satisfied that the Union's claim for compensation has merit.
The Court recommends that Mr B be paid compensation in the amount of €8,600 and that Mr W be paid compensation in the amount of €10,000 in full and final settlement of their claims. Having regard to the financial circumstances of the Local Authority half of the amounts recommended should be paid in the current financial year and the remainder paid in the financial year 2010.
This recommendation is made having regard to the particular circumstances of this case. Consequently it is not intended to have any application or implications beyond this case. It should not be quoted or relied upon as a precedent in support of any claim in this or any other employment.
Signed on behalf of the Labour Court
Kevin Duffy
29th October, 2009______________________
JFChairman
NOTE
Enquiries concerning this Recommendation should be addressed to John Foley, Court Secretary.