LCR22248

1.Removal Of 'Country Money'

BACKGROUND:

2.This issue has been before the Court previously and LCR 22046 refers which recommended continuation of the payment until 31 December 2019 to allow time for the parties to engage constructively and if necessary, under the auspices of the Conciliation Service of the Workplace Relations Commission.

The matter was referred to the Labour Court and a hearing took place on 25 August 2020


UNION'S ARGUMENTS:

The Union have tried to engage in discussions with Waterways Ireland without success

The Union accept both Waterways Ireland's and our Members' obligation to comply with Revenue rules. Since 1st January 2019, the Allowance has been paid to our members in compliance with Revenue rules. As a consequence of which, staff have incurred financial losses ranging from between €40 - €90 per week in take-home pay.

It is the Union's contention, that despite the negative financial impact on our members, the current arrangement should be maintained. Whilst it will not fully replace payment of the tax-free Country Money it will go some way towards mitigating the loss of Country Money payments for staff, many of whom have been in receipt of same for over 30 years.

COMPANY'S ARGUMENTS:

On reviewing Revenue Commissioners rules in relation to ‘Country Money’, Management had concerns about the application of same internally and sought independent tax advice. The tax advice confirmed that the conditions under which ‘Country Money can be paid tax free were not being fully applied in accordance with current Revenue guidance.

Waterways Ireland referred the Court's decision to the Body's Sponsor Department, DCHG, on 17th July 2019 and formally sought that the Sponsor Department refer the matter to DPER.

Waterways Ireland have been given a clear instruction by DPER and are currently operating the conditions as set out, that is the rate of country money is paid for travel of less than 20 miles, but the payment is taxed. This arrangement will continue until otherwise recommended by the Court

RECOMMENDATION:

The issue in dispute between the Union and the Employer is the payment of the “Country money allowance” to 70 workers. This issue was previously before the Court and the Court recommended that the parties should engage further on the issue. The parties were unable to resolve their differences at Conciliation and the issue was referred back to the Court. The Court having read the submissions of the parties and listened carefully to the oral submissions on the day of the hearing recommends the continuation of the existing arrangements i.e. the arrangements that were in operation at the time of this hearing. The parties should engage in the normal manner in respect of any actual loss that arises from this arrangement.

The Court so Recommends.

	Signed on behalf of the Labour Court
	Louise O'Donnell
NJ	______________________
28 AUGUST 2020	Deputy Chairman