LCR15486

FULL RECOMMENDATION CD/97/13 RECOMMENDATIONNO.LCR15486 (CC96/1097) INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : BANK OF IRELAND - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Flood Employer Member: Mr Keogh Worker Member: Mr Walsh

SUBJECT:
1. Compensation for reorganisation of service staff.


BACKGROUND:

2. The issue before the Court concerns a claim by the Union for compensation on behalf of 5 porters as a result of a major reorganisation at the Bank's premises, 34/35 College Green, Dublin 2, where 7 porters were originally employed.

The Union is seeking an ongoing payment of £35.00 per week for its members as a result of the reorganisation. It claims that major savings will accrue to the Bank amounting to £30,000 per year. The increase sought is justified having regard to the co-operation of the staff concerned and the savings involved.

The Bank rejected the Union's claim. However, it was prepared to offer a lump sum "goodwill payment" of £1,000 on a "once off" basis. The offer was rejected by the Union.

As no agreement was possible between the parties the dispute was referred to the Conciliation Service of the Labour Relations Commission. Conciliation conferences were held on the 2nd October, 1996 and 3rd December, 1996 but no agreement was reached. The dispute was referred to the Labour Court under Section 26(1) of the Industrial Relations Act, 1990. The Court investigated the dispute on the 18th March, 1997.


UNION'S ARGUMENTS:

3. 1. The staff have co-operated fully with management concerning the reorganisation at 34 College Green.




2. Productivity will increase substantially as a result of the new changes.

3. Major savings will accrue to the Bank as a result of the reorganisation.

4. The Bank has substantially increased its profits in the last financial year and should concede the claim.


BANK'S ARGUMENTS:

4. 1. The reduction in portering staff from 7 to 5 is justified as the number of staff serviced has declined by 35% to 40%.

2. The reduction in the number of porters has been achieved through retirements, and the reorganisation will not result in the loss of any permanent jobs.

3. The Bank is operating in a very competitive market and must keep its operating costs to a minimum.

4. The Bank has offered a "once off" payment of £1,000 to each porter involved which should be accepted in full and final settlement of this claim.



RECOMMENDATION:

The Court having considered the written and oral submissions, finds that the Bank's offer of £1,000 once off good will payment is reasonable in the circumstances and should be accepted.



Signed on behalf of the Labour Court



Finbarr Flood
3rd April, 1997______________________
L.W./S.G.Deputy Chairman



NOTE

Enquiries concerning this Recommendation should be addressed to Larry Wisely, Court Secretary.