LCR20047

SUBJECT:
1. Compensation for loss of overtime earnings


BACKGROUND:

2. The claim by the Union is on behalf of a group of workers and is for a loss of overtime. The overtime of 7.25 hours on Saturday had been worked by the claimants for up to 40 years and was worth approximately €250 per person. The Council stopped the overtime to the workers in February, 2009, when it decided to outsource it for commercial reasons. Whilst the Union accepts the Council's reasons its case is that the overtime had been a regular part of the workers' wages for many years and that they should be compensated for the loss.

The dispute was referred to the Labour Relations Commission (LRC) and a conciliation conference took place. As the parties did not reach agreement, the dispute was referred to the Labour Court on the 24th March, 2011, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 13th April, 2011, in Cork.


UNION'S ARGUMENTS:

3. 1. The overtime was a regular and rostered part of the workers pay for up to 40 years and, as such, its loss was significant. It was also pensionable which makes the loss even greater.


COUNCIL'S ARGUMENTS:

4. 1. The Council has encountered significant difficulties in preparing annual budgets since 2003 and has had to implement major changes to deal with the reductions in recent years. In 2003 overtime was eliminated for all indoor staff and eliminated or reduced for outdoor staff. No compensation was paid to any of the office staff.

2. In 2008 the Council found that outsourcing the work offered very competitive prices and decided to use contractors from February, 2009. Any compensation to the workers concerned would have significant cost implications for the Council as other sections also lost regular overtime and could make similar claims.



RECOMMENDATION:

The dispute before the Court concerns a claim for compensation for loss of regular and rostered overtime earnings worked for seven and a quarter hours every Saturday. The overtime ceased in February, 2009, when the Council outsourced the work for commercial reasons and due to the Council’s budgetary restraints and in accordance with implementation of an agreement reached through the Local Authority National Partnership Advisory Group (LANPAG).

The Union submitted that the Claimants had worked the overtime on a regular and rostered basis for up to 40 years and it sought twice the annual loss.

Having considered the submissions of both parties, the Court is of the view that compensation is warranted in this case. Having regard to the terms of the Public Service Agreement 2010 – 2014, the Court recommendsthat the compensation for actual loss of earnings arising from the new arrangements should be calculated on the basis of 1.5 times the actual loss.

In this case as the overtime ceased in February, 2009, over two years ago, the Court is of the view that it would be inappropriate to recommend a phasing arrangement and accordingly the Court recommends that the compensation payment should be paid from the date of acceptance of the Recommendation.

The Court was told that one of the Claimants retired in April 2009. The Court is of the view that the above Recommendation should not apply to that individual. However, in his case the Court recommends that a once off lump sum of €2,000 should be paid in full and final settlement of the claim.

The Court so recommends.



Signed on behalf of the Labour Court



Caroline Jenkinson
27th April, 2011______________________
CONDeputy Chairman



NOTE

Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.