LCR22046

Waterways Ireland was established in 2001 as a North/South Body on foot of the Good Friday Agreement. Many of the Workers employed by Waterways Ireland transferred to it on its establishment from Dὐchas, the Office of Public Works or Shannon Navigation. They were given a commitment at the time that they would retain their existing terms and conditions of employment.

The within dispute concerns seventy Workers. It relates to the payment of a weekly ‘Country Money Allowance’ of €181.64 which many of the Workers concerned have been in receipt of prior to 2001. The allowance is paid to compensate the Workers for bearing their own transportation costs for attending at different work sites at their normal start times rather than reporting to a fixed base and then being transported to those various work sites at the employer’s expense. Historically, this allowance has been paid on a tax-free basis to the Workers in circumstances where they were required to travel five or more miles to their work site.

In 2018, Waterways Ireland undertook a review of pay and allowances across its workforce. It became evident in the course of conducting that exercise that the manner in which the Country Money Allowance was being paid was not fully compliant with Revenue rules as the rules permit such an allowance to be paid tax-free only in circumstances where the recipient is required to travel twenty or more miles. This anomaly was communicated to staff in writing on 8 August 2018. They were also advised on that date that the relevant Revenue rules would be implemented by Waterways Ireland with effect from 1 January 2019. The Workers were also informed that Waterways Ireland would indemnify them in respect of any historical underpayment of income tax arising in respect of the manner in which the allowance had previously been paid.

The Union has informed the Court that if fully accepts that Waterways Ireland is obliged to rectify the historical non-compliance with Revenue rules that arose from the manner in which the Country Money Allowance has been paid to date. It, however, is seeking a resolution to the dispute which is just and equitable for its Members and which minimises the financial impact of the change on them.

Recommendation

The Court recommends continued payment of the allowance until 31 December 2019, albeit on a taxable basis.

In the meantime, the Parties should engage directly and constructively– and if necessary, under the auspices of the Conciliation Service of the Workplace Relations Commission – with a view to agreeing a payment mechanism that both maintains the current flexibility on the Workers’ side vis-�-vis their travel and welfare arrangements while working away from base and compensates them for this in a fair and equitable manner in a manner that is consistent with Revenue rules.

On cessation of payment of the allowance, the Workers should be compensated for any loss in accordance with the standard PSA formula i.e. 1.5 times the annual loss.

The Court so recommends.

Signed on behalf of the Labour Court



Alan Haugh
FMc______________________
17th July 2019Deputy Chairman



NOTE

Enquiries concerning this Recommendation should be addressed to Fiona McCarthy, Court Secretary.