FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : DUN LAOGHAIRE HARBOUR COMPANY (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Murphy Worker Member: Ms Tanham |
1. Survival plan
BACKGROUND:
2. In August, 2010, a survival plan for the Company was addressed by LCR19892. The recommendation resolved a number of issues for the parties and it allowed them to refer back any outstanding issues. Numerous conciliation conferences took place but the following issues, which concern 6 Maintenance Staff, remain unresolved and have been referred back to the Court;
compensation for loss of regular and rostered overtime
proposal to buy out travel time
proposal to buy out an eating-on-site allowance
The dispute was referred to the Labour Relations Commission (LRC) and a number of conciliation conferences took place. As the parties did not reach agreement, the dispute was referred to the Labour Court on the 8th September, 2011, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 16th December, 2011.
UNION'S ARGUMENTS:
3. 1. In 2010 significant redundancies featured from all 3 grades - Harbour Police, General Operatives and Craftsmen - resulting in a total reduction of direct employment from 34 to 19. This represented net savings of almost €800,000 for the Company. The Company's annual report for 2010 shows it to be in an improved financial state as compared to 2009.
2. The Company has already sought and gained very significant cost reductions and flexibilities from the remaining members on top of what was achieved from the extent of rationalisation of jobs.
COMPANY'S ARGUMENTS:
4. 1. The Company remains in a very serious financial situation (details supplied to the Court) and will remain so until the proposed restructuring is fully implemented . Since 15th September, 2011, Stena Line has ceased all sailings from Dun Laoghaire Harbour for at least 7 months. It has declared that its service from Dun Laoghaire to Holyhead will remain "seasonal" only. This will have a huge adverse effect on the Company's revenue.
2. Unlike their Civil and Public Service colleagues the General Operative Grades have had no cuts in their terms and conditions of employment.
RECOMMENDATION:
The matter before the Court arises following Labour Court Recommendation No 19892 which concerned the Company’s proposed Survival Plan. The Court recommended,inter alia,
- “It is, however, clear to the Court that the Company has experienced a significant deterioration in its financial and commercial circumstances to which it must respond. The viability of the Harbour Company, and the sustainability of the employment which it supports, are obviously matters of considerable concern to the Company itself and to the Unions representing its staff. These issues must be addressed, with some urgency, by those parties. To date, and notwithstanding the efforts of the LRC, there has been no such engagement in any meaningful sense…..
If final agreement is not reached outstanding issues may be referred back to the Court for a definitive recommendation.”
Following numerous Conciliation Conferences, at the last Conference on 10thAugust 2011 the parties agreed on a number of cost-efficiencies and flexibilities and the basis of an agreement emerged. The outstanding issues have now been referred back to the Court for a definitive recommendation.
The Court notes that the parties have agreed on hours of work and rosters for the General Operatives involved in the claim whereby all six Operatives agreed to work a 39-hour week with four operating a 5 over 7 day roster on the new consolidated salary and the other two Operatives working Monday to Friday. Rosters were agreed to include seasonality factors.
Agreement was also reached on flexibility whereby all six Operatives agreed to work both inside and outside the terminal building based on business needs and to carry out painting duties previously performed by contractors. Payroll will move from weekly to fortnightly payments.
Details of salaries for the six Operatives were provided (as outlined in Company’s letter 24thAugust 2011 to the Labour Relations Commission, contained in Appendix 4 of its submission to the Court). The Court notes the following:-
- •The salaries quoted for the four Operatives rostered 5 over 7 days encompasses a 25% shift premium which has now been consolidated into the salary quoted.
•The salary for the Stores Operative encompasses a Stores Allowance of €4,320 which has now been consolidated into the salary quoted.
•The Court further notes that the Company accepted that the rate of €33,953 will apply to the remaining Operative.
•The salaries quoted are fully reckonable for pension purposes in accordance with the Company’s Defined Benefit Pension Scheme.
Consequently, the remaining issues for the Court to consider are (i) compensation for loss of regular and rostered overtime; (ii) a proposal to buy out travel time and (iii) a proposal to buy out an eating-on-site allowance.
Having considered the submissions of both parties the Court recommends that compensation in line with that applicable in the public sector (under the terms of the Public Service Agreement 2010-2014) should apply to the buy-out of regular and rostered overtime, i.e. compensation at a rate of one-and-a-half times’ the established annual loss.
The Court does not recommend a buy-out of the travel time at this point in time, however, this issue should be further addressed as part of the recommended review below.
The Court does not recommend a buy-out of the eating-on-site-allowance at this point in time; however, this issue should also be further addressed as part of the recommended review below.
The Court recommends that the situation should be reviewed in January 2013 to take account of the circumstances prevailing in the business at that time.
The Court recommends that this Recommendation should be put to ballot of the Union members as a composite package in full and final settlement of all the outstanding issues referred to the Court.
The Court so recommends.
Signed on behalf of the Labour Court
Caroline Jenkinson
21st December, 2011______________________
CONDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.