FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : PORT OF CORK COMPANY (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - 23 VARIOUS GRADES (REPRESENTED BY IRISH MUNICIPAL, PUBLIC AND CIVIL TRADE UNION SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION TECHNICAL, ENGINEERING AND ELECTRICAL UNION) DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Murphy Worker Member: Mr Shanahan |
1. Application of Public Sector pay cuts.
BACKGROUND:
2. The Port of Cork Company (previously Cork Harbour Commissioners) is a private commercial State-owned company with the Minister for Transport, Tourism and Sport as one shareholder and the Minister for Finance as the other. The Company currently employs a total of 107 people, which include 35 whose rates of pay are linked to the Local Authority and Public Sector pay rates and 60 whose pay rates have traditionally followed the private sector model.
The case refers to the application of adjustments in pay rates for the 35 employees whose pay and conditions are currently aligned with similar grades in the Local Authority and Public Sector.
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 15th April, 2011, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 7th September, 2011.
UNIONS' ARGUMENTS:
3. 1. The Unions are not prepared to accept any reduction in basic pay rates while other Employees who are outside of the Agreements enjoy an increase in their pay rates under the T2016 agreement.
2.The Union Group has offered a number of alternative proposals which offer considerable payroll savings including actively encouraging the acceptance of an early retirement/redundancy package.
3. The Port is not claiming financial difficulties as it has in fact made a profit in 2010.In a press release dated 18th January, 2011 it clearly states "The Port of Cork expects 2011 to be even busier".
COMPANY'S ARGUMENTS:
4. 1. The Company and the pension fund are in a serious financial position and will continue to face challenges in relation to its future trading environment. In short, difficult and unpalatable decisions will have to be taken for the overall good of its customers,its employees and the Company.
2. As pay increases and benchmarking were awarded in the Public Sector, the Agreement said that they had to be given to these employees in the Port. In the same vein the Unions and their members must now take on the pay reductions and implement the Agreement.
RECOMMENDATION:
The issue before the Court concerns the application of adjustments in pay rates parallel to those which applied in the Public Sector in respect of 35 Employees aligned for pay purposes to Local Authority and Public Sector pay grades.
The Company sought pay reductions for those grades aligned to Local Authority and Public Sector pay grades in line with agreements reached with IMPACT on relativities which were originally established in 1979. The Company stated that these reductions in pay would yield equivalent payroll savings of €112,000 which were necessary in the current commercial circumstances of the Company.
The Union Group stated that they were opposed to the implementation of pay cuts, however, they were prepared to engage in discussions with the Company on delivering a wide range of cost reductions and rationalisation measures to achieve cost savings to an equivalent value.
The Court notes that the alignment to the Local Authority and Public Sector Pay grades is underpinned by the Port of Cork Company/IMPACT Trade Union Agreements of 1979 and 1996. This agreement has been in place for a long number of years and continues to apply.
In all the circumstances of this case the Court recommends that the parties should enter into joint meaningful negotiations on agreeing alternative cost saving measures to the value of €112,000. These negotiations must be completed by 21st October 2011 at the latest.
In the event that of no agreement being reached between the parties by 21st October 2011 then the Court recommends that the pay adjustments sought by the Company in line with the relativities established for the various grades under the 1979 and 1996 Agreements should take place with effect from 1st November 2011.
The Court so recommends.
Signed on behalf of the Labour Court
Caroline Jenkinson
22nd September, 2011______________________
JFDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to John Foley, Court Secretary.