FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 20(2), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : I O SYSTEMS LTD - AND - CWU DIVISION : Chairman: Mr Duffy Employer Member: Ms Cryan Worker Member: Mr Nash |
1. Cost Reduction Proposals
BACKGROUND:
2. This case concerns a dispute between I.O. Systems Limited and the CWU in relation to the implementation of a cost savings programme at An Post mailing centres. An Post has mandated the Company to reduce its charges to them by €375,000 and the parties are in dispute in relation to how these savings can be achieved.
The dispute was not 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 parties referred the dispute to the Court in accordance with Section 20(2) of the Industrial Relations Act, 1969 and agreed to be bound by the Courts Recommendation. A Labour Court hearing took place on the 16th December, 2010.
The parties subsequently agreed to adjourn the Labour Court hearing for further discussions which has produced agreement on the following terms:
Meal Allowance
As per the LRC proposals of the 28th June 2010 , the Meal Allowance paid in the Provincial mailing centres should cease.
Annual Leave / Sick Leave Cover
As per the LRC proposals of the 28th June 2010, in order to address the differences between the parties re the value of savings associated with the redundancies of the Technician & assistant Technician , the appropriate savings should be regarded as €10,000.
Cost Saving from Flexibilities
As per the LRC proposals of the 28th June 2010, the appropriate savings in relation to potential savings from the various flexibilities between the parties should be regarded as €8,000.
Shift Premium
Following further review and clarification of the issue of shift premium reduction, it has now been determined that
1.There should be a 4% reduction of the shift premium in the Provincial Centres
2.There should be a 3% reduction of the shift premium for the 8 hour shift technicians at the Dublin Mailing Centre
Flexible Cover Arrangements
Following further review and clarification of the DMC Flexible Cover proposals, we have reached an agreement and understanding, which resolves the differences between the parties.
In consideration of the agreed revised arrangements, the proposed 28th June 2010 LRC benefit to staff of €50,000 has now been determined as €56,250.
Salary Reduction
In resolving the differences between the parties and in ensuring the delivery of the balance of the mandated An Post cost savings it has been further determined that there be a 2% salary cut across the board , for all operation staff (inclusive of all Technicians,Technical Assistants & Storesperson ) employed at the 4 mailing centres.
Company Contribution
As per the LRC proposals of the 28th June 2010, any shortfall associated with the delay in the implementation of the An Post mandate has to be a matter to be resolved between An Post and IO Systems.
The above settlement terms to be deemed as a full and final settlement between the parties and implemented from the 1st January 2011.
RECOMMENDATION:
The Court recommends that the terms as agreed by the parties be implemented.
Signed on behalf of the Labour Court
Kevin Duffy
22nd December 2010______________________
AHChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.