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LCR22727

FULL RECOMMENDATION


CD/22/249
CC165145-20
RECOMMENDATION  NO. LCR22727

SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990


PARTIES :
BUS EIREANN

- AND -

230 CRAFT & MAINTENANCE GRADES
(REPRESENTED BY UNITE THE UNION
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION)


DIVISION :

Chairman: Ms Connolly
Employer Member: Mr Murphy
Worker Member: Mr Hall

SUBJECT:

1. Changes to Sickness Benefit Scheme

BACKGROUND:

2. This dispute could not be resolved at local level and was the subject of Conciliation Conferences under the auspices of the Workplace Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on 15 December 2022 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 3 March 2023.

UNION'S ARGUMENTS:

  1. The terms of the CIE Welfare Scheme regarding sickness benefit have not been applied by the company to maintenance workers since June 2017.
  2. Changes made to the scheme have resulted in financial loss to members incapacitated from duty.
  3. The Unions request reinstatement of the provisions that previously applied and retrospective payments to all impacted maintenance members.


    COMPANY'S ARGUMENTS:
  1. Changes made to the Scheme were implemented in 2017 at a time when the Company was in a distressed financial position.
  2. The Company is willing to re-instate the original sickness benefit formula with effect from the 1 January 2023.
  3. The cost of paying retrospection to 2017 is not feasible as the cost would be in excess of €250,000.

RECOMMENDATION :

The dispute before the Court relates to Sickness Benefit payments paid to maintenance members. The matter was the subject of two conciliation conference under the auspices of the Workplace Relations Commission (WRC) in August 2022 and December 2022.

The unions assert that the company has failed to apply the terms of the CIE Welfare Scheme regarding sickness benefit to maintenance workers since June 2017. Changes made to the terms of the scheme by the company resulted in financial loss to members who are incapacitated from duty due to illness or injury. The unions seek the reinstatement of arrangements that previously applied and the payment of retrospective payments to all impacted maintenance members.

The company submits that the CIE Welfare Scheme applies across all companies and grades within the group, but there is no uniformity in how the scheme is applied. Changes introduced in 2017 were made against a backdrop of serious cost pressures which threatened the company’s solvency. The company submits that the dispute only came to light in 2020 as part of a conciliation conference addressing other issues relating to loss of earnings. It is willing to reinstate the Sickness Benefit payments with effect from January 2023 and pay some level of retrospection but asserts that the cost of conceding the claim for retrospection to 2017 is prohibitive given the current losses forecast for 2023 and beyond.

The Court has given careful consideration to the oral and written submissions made by the parties.

The Court is of the view that agreements should be honoured by all parties. The Court has frequently pointed out that no agreement is immutable for all time and that changes in circumstances may arise which may make it necessary to revise or terminate an agreement to reflect the changing circumstances of the business and the economy. It is for the party seeking change to obtain the agreement of the other party or parties. Where agreement is not obtained established industrial relations machinery should be used to resolve the disagreement.

The Court notes that the company is willing to reinstate the welfare scheme with immediate effect and that the remaining issue before the Court relates solely to the question of retrospection. In dealing with cases where the issue of retrospection arises the Court has tended to treat the date of claim as the time when arrears start accruing. In this case, the Court was struck by the lack of clarity between the parties about when the dispute before it first arose and when the claim was lodged. While the union maintain that the matter is ongoing since 2018, the company asserts that there are no records on file to support this, and that it only became aware that there was an issue in 2020.

The Court notes the significant economic challenges facing the company during this period. Having regard to all of the circumstance of this case, including the delay in progressing the claim, the Court recommends that retrospective payments should be paid to impacted maintenance workers with effect from 1 September 2020.

The Court so recommends.

Signed on behalf of the Labour Court
Katie Connolly
NCL ______________________
28 March 2023 Deputy Chairman


NOTE

Enquiries concerning this Recommendation should be addressed to Nuria de Cos Lara, Court Secretary.