FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : BORD NA MONA - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Ms Cryan Worker Member: Ms Ni Mhurchu |
1. Compensation for loss of earnings / Breach of Agreement.
BACKGROUND:
2. This dispute arose from the Company's decision to have a four-month outage at a power station. 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 11th October, 2010, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 10th April, 2012.
UNION'S ARGUMENTS:
3 1Union members voted to reject the Company’s proposal on terms and conditions for a proposed twenty-week period from April 2010 to September 2010.
2The Company proposal was worked under protest in that Union members would continue to work but would suffer an unacceptable loss of earnings as a result of the closure because they would lose their access to overscale allowances, overtime and “Pay By Result” earnings.
3It was unacceptable that Union members should suffer severe losses as a result of an outage that was not of their making.
EMPLOYER'S ARGUMENTS:
4 1The Company took all reasonable steps to minimise the impact on employees during the planned outage in Lough Ree Power Station.
2A comprehensive consultation process (e.g. six meetings between December 2009 and May 2010 with representatives and full-time officials) was undertaken to mitigate any adverse consequences for employees affected by the necessary repairs to the ESB facility.
3.No compulsory lay-off or short-time working was imposed; in some cases, employees could have enhanced their earning potential by complying with the Company proposals to re-deploy to other areas.
RECOMMENDATION:
The matter before the Court concerns a claim by the Group of Unions for compensation for loss of earnings due to the closure for essential repairs (outage) of the ESB Lough Ree Power Station. This outage resulted in a reduction of peat and all sales and associated operations ceased at the Bord Na Mona Mountdillion works, with a consequent loss of revenue for the Company.
Management made every effort to redeploy the workers affected and instead of laying them off or introducing short-time working, each worker concerned was personally spoken to about alternative work options, some of which could potentially attract higher earnings.
The Group of Unions submitted that as a result some workers suffered a loss of earnings and they sought compensation for the losses. When ESB informed the Company that it was in a position to resume sales three weeks earlier than scheduled, management informed workers that they would be put back on the allowances/payments which had ceased during the outage. Some of the workers refused to return to normal working, resulting in normal working not resuming until almost the pre-scheduled date, two weeks later.
Having considered the submissions of both sides the Court is of the view that Management made every effort to facilitate workers with alternative work during the outage period and to mitigate their losses, in circumstances where the alternative would have been lay-off or short-time working. In all the circumstances of this case, the Court does not see merit in the claim for compensation for loss of earnings.
The Court so recommends.
Signed on behalf of the Labour Court
Caroline Jenkinson
17th April, 2012______________________
COFDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Colm O'Flaherty, Court Secretary.