FULL RECOMMENDATION
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : DUBLIN AIRPORT AUTHORITY - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms O'Donnell Employer Member: Ms Connolly Worker Member: Mr McCarthy |
1. Relocation of Shared Services Centre From Shannon Airport to Plassey, Limerick
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 the 9 August 2017 in accordance with Section 26(1) of the Industrial Relations Act, 1990.
A Labour Court hearing took place on the 5 September 2017.
UNION’S ARGUMENTS:
3. 1. The decision to relocate the Shared Services Centre (SSC) was taken without any consultation or alternative agreeable location considered.
2. Members in SSC are being disadvantaged no longer having access to airport facilities such as staff travel, Airport Credit Union, benefit schemes and Duty free.
3. The re-location changes the base location of employment in many members contract of employment.
EMPLOYER'S ARGUMENTS:
4. 1. The proposed relocation of employment base is moving within a reasonable distance.
2. The Company submit that they made a generous proposal for a transitionary payment for those adversely affected and are committed to providing flexibility in working arrangements to facilitate transition to the new premises.
3. The relocation is based on plans for continued development and expansion of SSC.
RECOMMENDATION:
The issues in dispute relate to the decision of the Company to relocate its Shared Services Centre from Shannon Airport to Plassey Business Park, Castletroy, Limerick. The Company indicated that one of the main reasons for the decision to relocate was to allow for expansion. They indicated that they had recently recruited two staff and were struggling to find a space for them in their current location. It is expected that the move will take place in November, 2017.
The Union expressed disappointment that there were no discussions prior to the decision to move to Plassey Business Park as they felt that suitable accommodation could have been found in the vicinity of Shannon Airport. They pointed out that the majority of staff covered by the claim have either Shannon Airport or Shannon listed in their contracts as the place of work. They also raised concerns relating to a number of benefits accruing to staff by the mere fact of working in an airport environment and that they would lose some if not all of these benefits as a direct result of moving to new premises.
The commute to Plassey Park will be particularly difficult for most staff as there is no direct Public transport available and commuting by car will either entail enduring heavy traffic driving through Limerick both morning and evening or additional mileage and tolls if using the motorway. The Union highlighted that these issues combined to make a unique set of circumstances peculiar to this move. The Union are seeking
1) payment of compensation to all their members
2) a severance package for staff that do not wish to relocate
3) flexible/ home working arrangements .
The Company accepted that with the exception of recent recruits, staff contracts have either Shannon Airport or Shannon region as the work location, and that there was no direct bus route to the new offices. They noted that the Union wanted a lump-sum for everyone but the Company felt it was fairer to make payment only to those who had to travel an additional distance to get to work.
They proposed what they believed to be a number of solutions to address the issues raised,
1) a transitionary lump-sum for staff who had to travel additional distance,
2) a bus from Shannon to Limerick for a six month period
3) considerable flexibility around start/finish time and
4) home working for a transition period which would be reviewed.
The Company also indicated that they had local discussions around some of the issues relating to lost benefits and felt that they could address these.
The company were adamant that a severance package was not an option as they were currently recruiting additional staff and not looking to decrease their staffing levels. In terms of the efficient operation of the business they required all staff to transfer to the new premises.
The Court considered the detailed submissions of both parties and the oral arguments made on the day. The Court notes a level of agreement between the parties to engage on flexible working arrangements including homeworking where it can be facilitated, to engage on the provision of a bus service for an initial period subject to their being demand for same and to engage in relation to any individual with a particular difficulty.
In relation to the issue of a severance package, while acknowledging the particular challenges the move will present for some individuals the Court does not believe in circumstances where the company is seeking to expand and recruit additional staff that such a package would be appropriate.
The Court is of the view that taking into account the particular circumstances of this case that a transitional payment should be paid to the 32 members of SIPTU covered by this claim in the following manner;
- €4,000 euro falling due on date of transfer
€500 euro voucher to be paid December 2017
€500 euro voucher to be paid January 2018
€2,000 euro falling due six months after date of transfer
€500 euro voucher to be paid January 2019
Signed on behalf of the Labour Court
Louise O'Donnell
LS______________________
06 September 2017Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Louise Shally, Court Secretary.