LCR15447

FULL RECOMMENDATION CD/96/617 RECOMMENDATIONNO.LCR15447 (CC96/1118) INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : TSB BANK - AND - MANDATE AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Flood Employer Member: Mr Pierce Worker Member: Mr Walsh

SUBJECT:
1. ATM allowance.



BACKGROUND:

2. In 1995 the Bank's auditors advised that, in order to comply with tax legislation, various allowances such as lunch allowance, tea allowance and alarm/ATM allowance must be subjected to PAYE and PRSI deductions. Following negotiations with the Unions the Bank proposed to increase the allowances as follows:-


TSB Bank Rate Associated Bank Revised TSB
Prior to 1/11/95 Rate @ 1/11/95 Bank Rate
effective
1/11/95

Lunch Allowance£ 6.39 Net £10.51 Gross £10.51 Gross
Tea Allowance£ 4.47 Net £ 8.38 Gross £ 8.38 Gross
Alarm/ATM Allowance£36.00 Net £39.32 Gross £50.00 Gross


The proposed new rates were balloted on and the offer of £50.00 gross for the alarm/ATM allowance was rejected. The issue was referred to the Labour Relations Commission and a conciliation conference was held on 30th October, 1996. As agreement could not be reached the dispute was then referred to the Labour Court in accordance with Section 26(1) of the Industrial Relations Act, 1990. The Court investigated the dispute on 14th January, 1997, the earliest date suitable to the parties.






UNIONS' ARGUMENTS:

3. 1. The value of the service provided by staff on a voluntary basis has not diminished although the reward has been reduced. Any possible alternatives such as employing the services of a security company would be a more expensive option.

2. Although the Bank is not obliged to absorb tax charges imposed by the Revenue Commissioners, the Bank has accepted that compensation is due to staff by making an offer of £50.00 for the alarm/ATM allowance. If the Bank increases its offer to £60.00, as had previously been discussed during negotiations, the Unions will recommend it for acceptance.



BANK'S ARGUMENTS:

4. 1. The Bank has responded in a fair and reasonable manner to an issue over which it has no control. It was obliged to subject the various allowances to PAYE and PRSI in order to comply with current tax legislation.

2. The Bank has increased the lunch and tea allowances in line with those paid by the four main associated banks. As a gesture of goodwill to staff the Bank has offered an alarm/ATM allowance of £50.00 gross which is 27% more than that paid by the associated banks. There is no justification for any further increase.





RECOMMENDATION:

The Court, having considered all the information before it, finds that the Company's offer was not unreasonable taking into account all the circumstances of this case.



Signed on behalf of the Labour Court



Finbarr Flood
4th February, 1997______________________
D.G./D.T.Deputy Chairman



NOTE

Enquiries concerning this Recommendation should be addressed to Dympna Greene, Court Secretary.