FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : DUBLIN BUS - AND - NBRU SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION TRANSPORT SALARIED STAFFS' ASSOCIATION TECHNICAL, ENGINEERING AND ELECTRICAL UNION UNITE DIVISION : Chairman: Mr Duffy Employer Member: Ms Cryan Worker Member: Ms Tanham |
1. Cost Reduction Plan - Incorporating a number of issues.
BACKGROUND:
2. The case before the Court concerns a dispute between the Company and the Union Group consisting of SIPTU, NBRU, TSSA, Unite and TEEU in relation to the implementation of a cost reduction plan for employees in Dublin Bus. The dispute was referred to the Labour Court on the 4thof January 2013 in accordance with Section 26(1) of the Industrial Relations Act 1990. A Labour Court hearing took place on the 15thof March 2013 and a subsequent hearing took place on the 15thof April 2013. The following is the Recommendation of the Court.
RECOMMENDATION:
This dispute came before the Court following extensive negotiations at local level and
in conciliation at the LRC on a range of proposals by the Company intended to
address its deteriorating financial position. This deterioration has arisen from the
combined effect of reductions in subventions, increased operating costs and a decline
in revenue in consequence of a reduction in passenger journeys undertaken. At the end
of 2012 the Company had an accumulated deficit of €52.2m.
The Company is seeking to achieve significant savings in its cost base of the order of
€11.7m annually of which some €7.7m is to come from direct payroll costs and some
€4m from efficiency and productivity savings which will impact on working
arrangements affecting staff.
The financial data upon which the Company's proposals are based has been
independently examined and verified by two independent consultants nominated by
the Unions. The report of these consultants has been furnished to the Court.
There is no proposal to reduce core or basic pay but it is acknowledged that many of
the proposals, particularly those involving reductions in direct payroll costs, will
impact significantly on the earnings of employees. However,the Company believes
that there are no viable alternatives which could address the financial difficulties with
which it is faced.
The Unions pointed out that the measures, if implemented, would impact to an
unacceptable extent on the earnings of their members, most of whom are on low pay.
They also pointed out that the terms and conditions which the Company are seeking to
change are provided for in collective agreements and are incorporated in the
individual employment contracts of their members.They say that their members
cooperated with major restructuring of the Company in 2009 on the assurance that this
would secure the business into the future. In consequence they are not now prepared
accept further reductions in earnings on the same assurances.
Conclusions of the Court
The Court has considered the submissions of the parties and has carefully evaluated
all of the financial and other information with which it was provided,including the
reports from the independent assessors appointed by the Unions.
The terms and conditions of employment in issue are of long standing and are not out
of line with those applying in similar employments, including employments within the
CIE Group of Companies. In these circumstances the Court has consistently pointed
out that it will only recommend retrenchment in established conditions of employment
where, on independently verified financial evidence, it is plainly and unambiguously
necessary to do so in order to protect employment.The Court is satisfied that this is
such a case although the extent of the changes proposed cannot go beyond what those
affected could reasonably be expected to bear.Based on that consideration the Court
does not believe that it would be either reasonable or practical to recommend
concession of the full extent of what the Company have proposed.
Furthermore, the Court believes that if the recommendations that follow are accepted
they should not result in a permanent alteration of existing terms and conditions of
employment.Consequently, this Recommendation is made on the basis that its terms, if accepted, should operate as a derogation from the provisions of existing agreement until such time as the Company returns to a reasonable and sustainable level of profitability.
The Court is of the view that this Recommendation should remain in place for a period of 19 months following acceptance by all parties.
On that basis the Court recommends as follows: -
Part 1
Drivers
Rest day and overtime working
The Court recommends that:-
- (1)Rest day and overtime on Sunday to be paid at double time
(2) Rest day Monday to Saturday to be paid at time and one quarter
one quarter for the first two hours in a given day and at time and one half
thereafter.
- (4) Public Holiday normal day to be paid at time and one quarter plus statutory entitlement
(5) Public Holiday rest day and overtime to be paid at time and one quarter plus statutory entitlement
Incentive Schemes
The Court recommends that: -
(1) The Company's proposal on a revised attendance bonus should be accepted
(2) The safe driving bonus should be discontinued and replaced with a new
arrangement developed in the context of the Company's proposal on 'Driver
Feedback Technology' to achieve fuel savings. The Court recommends that the savings achieved should be shared on a 50/50 basis by way of a revised driver performance incentive scheme to be a put in place in a time frame of not more than three months of acceptance of this recommendation.
Income continuance Scheme
The Court recommends that the contributions to the scheme remain unchanged
Self -certified illness
The Court recommends that: -
(1) A total of 4 days self - certified sick leave should be permitted in a calendar
year
(2) No more than 2 such days should be permitted in any 6 month period
(3) With the exception of the above, the current terms of the scheme, including the
mode of calculating payment, should continue to apply.
Traveling Time
The Company's proposals on traveling time should be referred back for further
discussions with a view to reaching agreement within a time frame of not more than
three months.
Shift Pay
The Court does not recommend any change in the current arrangements for shift
premium.
Late Breaks
The Court recommends that the proposal on late breaks should be accepted in the
terms set out in the in the Company's submission to the Court.
New Driver Rates
The Court recommends that the proposal on rates for new drivers should be accepted
in the terms set out in the Company's submission to the Court.
First Use Bus Check
The Company's proposals on'First use Bus Check' should be referred back for
further discussions with a view to reaching agreement within a time frame of not more
than three months.
Schedules
The Court recommends that Company's proposals on 'Schedules' should be implemented upon acceptance of this recommendation.
Revenue Protection
The Court recommends that the Company's proposal on 'Revenue Protection' be
accepted.
Part 2
Clerical Grade
Rest day and Overtime Working
The Court recommends that the Company's proposal on rest day and overtime
working be accepted in the terms set out in its submission to the Court except that in
the case of overtime working on Monday to Saturday the premium should be time and
one quarter for the first two hours ina given dayand time and one half thereafter.
Welfare Scheme
Issues relating to the Company's welfare scheme should be addressed in the context of
discussions currently taking place at the level of the CIE Group.
Self-Certified Illness
The Court recommends that: -
(1) A total of 4 days self - certified sick leave should be permitted in a calendar
year
(2) No more than 2 such days should be permitted in any 6 month period
(3) With the exception of the above, the current terms of the scheme, including the
mode of calculating payment, should continue to apply.
Working Week
The Court recommends that the Company's proposal on a revised working week be
accepted
Pension Scheme Rule 29b
All issues relating to 'Pension Scheme Rule 29b' should be addressed in the context
of discussions currently taking place at the level of the CIE Group.
Staffing Structure
The Company's proposals on 'Staffing Structure' should be referred back for further
discussions with a view to reaching agreement within a time frame of not more than
three months.
Part 3
Engineering Supervisor Grade
Rest day and Overtime Working
The Court recommends that.-
- (1)Rest day and overtime on Sunday to be paid at double time
(2)Rest day Monday to Saturday to be paid at time and a quarter
one quarter for the first two hours in a given day and at time and one half thereafter.
- (4)Public Holiday normal day to be paid at time and a quarter plus statutory entitlement
(5)Public Holiday rest day and overtime to be paid at time and a quarter plus statutory entitlement.
Welfare Scheme
Issues relating to the Company's welfare scheme should be addressed in the context of
discussions currently taking place at the level of the CIEGroup.
Self -certified illness
The Court recommends that: -
(1) A total of 4 days self - certified sick leave should be permitted in a calendar year
(2) No more than 2 such days should be permitted in any 6 month period
(3) With the exception of the above, the current terms of the scheme, including the
mode of calculating payment, should continue to apply.
Annual leave
The Court recommends that the Company proposal should be accepted
Incentive Scheme
The Court recommends that the Company's proposal on the incentive scheme
applicable to this grade be accepted.
Pension Scheme Rule 29b
All issues relating to 'Pension Scheme Rule 29b'should be addressed in the context
of discussions currently taking place at the level of the ClE Group.
Part 4
Craftworker Grade
Rest day and Overtime Working
The Court recommends that:-
- (1)Rest day and overtime on Sunday to be paid at double time
(2)Rest day Monday to Saturday to be paid at time and a quarter
one quarter for the first two hours in a given day and at time and one half thereafter.
- (4) Public Holiday normal day to be paid at time and a quarter plus statutory entitlement.
(5) Public Holiday rest day and overtime to be paid at time and a quarter plus statutory entitlement
Welfare Scheme
Issues relating to the Company's welfare scheme should be addressed in the context of
discussions currently taking place at the level of the CIE Group.
Self -certified illness
The Court recommends that: -
(1) A total of 4 days self - certified sick leave should be permitted in a calendar
year
(2) No more than 2 such days should be permitted in any 6 month period
(3) With the exception of the above, the current terms of the scheme, including the
mode of calculating payment, should continue to apply.
Annual leave
The Court recommends that the Company's proposal should be accepted.
Incentive Scheme
The Court recommends that the Company's proposal on the incentive scheme
applicable to this grade be accepted.
Pension Scheme Rule 29b
All issues relating to 'Pension Scheme Rule 29b' should be addressed in the context
of discussions currently taking place at the level of the CIE Group.
New Entrants Rate of Pay
The Court recommends that the Company's proposal on rates for new entrants be
accepted
Part 5
Traffic Supervisor Grade
Rest day and Overtime Working
The Court recommends that:-
- (1)Rest day and overtime on Sunday to be paid at double time
(2)Rest day Monday to Saturday to be paid at time and a quarter
one quarter for the first two hours in a given day and at time and one half thereafter.
- (4) Public Holiday normal day to be paid at time and a quarter plus statutory entitlement
(5) Public Holiday rest day and overtime to be paid at time and a quarter plus statutory entitlement.
Incentive Scheme
The Court recommends that the Company's proposal on the incentive scheme
applicable to this grade be accepted.
Income continuance Scheme
The Court recommends that the contributions to the scheme remain unchanged.
Welfare Scheme
Issues relating to the Company's welfare scheme should be addressed in the context of
discussions currently taking place at the level of the CIE Group.
Self -certified illness
The Court recommends that: -
(1) A total of 4 days self - certified sick leave should be permitted in a calendar
year
(2) No more than 2 such days should be permitted in any 6 month period
(3) With the exception of the above,the current terms of the scheme, including the
mode of calculating payment,should continue to apply.
Pension Scheme Rule 29b
All issues relating to 'Pension Scheme Rule 29b' should be addressed in the context
of discussions currently taking place at the level of the CIE Group.
Restructuring
The Company's proposals on'Restructuring' should be referred back for further
discussions with a view to reaching agreement within a time frame of not more than
three months.
Revenue Protection
The Court recommends that the Company's proposal on 'Revenue Protection' be
accepted.
Part 6
Engineering Operative Grade
Rest day and Overtime Working
The Court recommends that.-
(l) Rest day and overtime on Sunday to be paid at double time
(2) Rest day Monday to Saturday to be paid at time and a quarter
(3) Overtime working on Monday to Saturday to be paid at time and
one quarter for the first two hours in a given day and at time and one half thereafter.
(4)Public Holiday normal day to be paid at time and a quarter plus statutory.
(5)Public Holiday rest day and overtime to be paid at time and a quarter plus statutory
Welfare Scheme
Issues relating to the Company's welfare scheme should be addressed in the context of
discussions currently taking place at the level of the CIE Group.
Self -certified illness
The Court recommends that:-
(1) A total of 4 days self - certified sick leave should be permitted in a calendar
year
(2) No more than 2 such days should be permitted in any 6 month period
(3) With the exception of the above,the current terms of the scheme, including the
mode of calculating payment, should continue to apply.
Annual Leave
The Court recommends that the Company’s proposal be accepted.
Incentive Scheme
The Court recommends that the Company's proposal on the incentive scheme
applicable to this grade be accepted.
Pension Scheme Rule 29b
All issues relating to 'Pension Scheme Rule 29b' should be addressed in the context
of discussions currently taking place at the level of the CIE Group.
Staffing Structure
The Company's proposals on 'Staffing Structure' should be referred back for further
discussions with a viewtoreaching agreement within a time frame of not more than
three months.
New Entrants Rates of Pay
The Court recommends that the Company's proposal on rates for new entrants be
accepted
Signed on behalf of the Labour Court
Kevin Duffy
17th June 2013______________________
AHChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Sharon Cahill, Court Secretary.