FULL RECOMMENDATION
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : BORD NA MONA FUELS LTD - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Foley Employer Member: Ms Connolly Worker Member: Mr Shanahan |
1. (1) Pay Claim (2) Redundancy Terms.
BACKGROUND:
2. This dispute could not be resolved at local level and was the subject of a conciliation conference under the auspices of the Workplace Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on 13 June 2017 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 17 July 2017.
UNION’S ARGUMENTS:
3. 1. The Union is seeking a cost of living pay increase of 3.5% retrospectively applied to the last pay increase of August 2008.
2. Their members have not had a pay increase since 2008.
3. The Union is also seeking a claim for enhanced redundancy terms in relation to compulsory redundancies.
EMPLOYER'S ARGUMENTS:
4. 1. The Company, given the uncertain future of the sector in light of the impending ban on bituminous coal, cannot sustain a percentage pay increase at this time.
2. A reasonable offer has been made and the Company has given a commitment to sit down with staff to discuss pay in the future when this section reaches a period of stabilisation.
3.The Company already has a redundancy package in place since 2013 and has been utilising these terms in the recent exiting of staff.
RECOMMENDATION:
The Court has given very careful consideration to the written and oral submissions of the parties. The parties are agreed that the matter before the Court relates to the Coal Business of Bord na Mona and not to any other element of the Bord na Mona business.
The Court has been advised by the company that the business faces very significant challenges of a financial and regulatory nature. The Trade Union has confirmed to the Court that it does not share the analysis of the company as regards the challenges facing the Company.
The Court has been asked to consider two issues against this background of difference as regards the financial health of the Coal Business and the prospects for its future operations in light of potential regulatory developments. Those issues are (a) an issue related to redundancy terms to be applied to persons being made compulsorily redundant as a result of the closure of the Bond Road Coal Depot, and (b) a pay claim.
Redundancy Terms
The redundancy terms in place in the company have, according to the company, been established by instruction from the Department of Public Expenditure and Reform since 2013. The company has asserted to the Court that it does not have the scope to unilaterally alter those terms in response to a claim from the Trade Union side.
The Court has been advised that the parties will be engaged, separately to the issues before the Court, in discussions in a larger business unit over the coming months. The Court understands that those discussions will incorporate engagement on the potential for agreement on enhanced redundancy terms to apply in that location.
In the circumstances outlined in the submissions of the parties it seems to the Court that it would be unreasonable to set out a definitive recommendation on the redundancy terms to apply in this instance when a broader engagement on redundancy terms is in prospect at another location. A definitive recommendation issued to the five workers concerned herein could have the effect of precluding those workers from benefitting from any improved terms which might be agreed between the parties in separate discussions in due course.
In all of the circumstances the Court recommends that
•upon redundancy the five workers concerned should receive the currently approved terms of Statutory Redundancy entitlement plus 3 weeks pay per year of service, service payments of between €1,000 and €3,000 and a maximum ‘cap’ on ex-gratia severance of 78 weeks (with a scale applying as approved in 2013).•In the event of an agreement being reached at the larger location those finally agreed terms should be applied to the five workers being made redundant on the closure of the Bond Road Coal Depot.
Pay
The Court notes that the matter of pay in the Coal Business is, by common assent, to be dealt with separately to any other business unit in Bord na Mona including separately to the Fuels Division of Bord na Mona.
The Court notes the submissions of the parties and in particular the wide divergence between the parties as regards the financial and regulatory circumstance of the Coal Business.
The Court recommends that the matter of pay in the Coal Business be resolved in a structured manner as soon as possible. The Court notes the uncertainties as regards the challenges which might face the business into the future. Nevertheless the Court believes that it is necessary to reach a definitive conclusion on the claim of the Trade Union and recommends that
(a) The Company offer of €1,250 be accepted as a reasonable response to the Trade Union claim in 2017(b) That the parties engage in the final quarter of 2017 to find agreement on the Trade Union side claim for an increase to be applied to the basic rate of pay which has not been adjusted since 2008. Those engagements should be pursued through normal procedures as required such that finality in the matter can be achieved in early 2018.
Signed on behalf of the Labour Court
Kevin Foley
19 July 2017______________________
MNChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Michael Neville, Court Secretary.