LCR15578

FULL RECOMMENDATION CD/97/203 RECOMMENDATIONNO.LCR15578 (CC97/147) INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : BUS EIREANN - LIMERICK - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION NATIONAL BUS AND RAIL UNION DIVISION : Chairman: Mr Flood Employer Member: Mr Brennan Worker Member: Ms Ni Mhurchu

SUBJECT:
1. Claim for compensation due to the withdrawal of bus services on St. Stephen's day.





BACKGROUND:

2. On 5th December, 1996 the Company informed the Unions that bus services on St. Stephen's day in Limerick City and on the Limerick/Shannon/Ennis routes would be cancelled. The Company claims that support for these services in recent years has declined and due to the serious financial position of the Company the services on that day could no longer be sustained.

The Unions argue that the cancellations were implemented without prior consultation or agreement and submitted a claim on behalf of approximately 25 workers for compensation for the loss of earnings due to the cancellations.

The matter was referred to the Labour Relations Commission. A conciliation conference took place on the 8th April, 1997. As no agreement could be reached the dispute was referred to the Labour Court on 28th April, 1997 under Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place in Limerick on 21st May, 1997.




UNIONS' ARGUMENTS:

3. 1. The Company's argument that public transport services should be withdrawn if overhead costs cannot be met is unacceptable to the Unions. Under the 1958 Transport Act, the Company has a social obligation to run bus services on St. Stephen's day. If the criteria of profit and loss is considered to be the dominant factor then many routes would be abolished.

2. The workers had every expectation of being rostered for work on St. Stephen's day in line with arrangements that have been in place for many years. As a result of the Company's actions the workers lost 16 hours pay. They should be compensated for their loss of pay.




COMPANY'S ARGUMENTS:

4. 1. The withdrawal of the services on St. Stephen's day was carried out in accordance with the provisions contained in the Company/Union Agreement which states:-

"Public Holiday - Services Cancelled

Road passenger employees whose services are cancelled on a public holiday shall be paid a day's pay, including all bonus payments and allowances in relation to a basic day but excluding payment in respect of overtime and expenses."

2. The Company's decision was taken following a review of demands in previous years. This review showed that in 1995 revenue for St. Stephen's day fell far short of expenditure and confirmed that the level of service of passenger traffic had declined significantly in recent years.

3. The operation of services on public holidays must be justified by public support. The revenue for 1995 was less than one quarter of the total staff wages costs and when vehicle and overhead costs were added the losses were substantial.





RECOMMENDATION:

Although the question of the Company's obligation to provide public transport on days such as the one in dispute was a major argument made by the Unions, the Court does not see this as an issue for consideration by the Court.

Given the background to the Company's decision not to operate the service, the Court does not recommend compensation in this particular case.


The Court would, however, expect that, in future, changes such as the above would be conveyed as early as possible to the employees.



Signed on behalf of the Labour Court



Finbarr Flood
1st July, 1997______________________
F.B./D.T.Deputy Chairman



NOTE

Enquiries concerning this Recommendation should be addressed to Fran Brennan, Court Secretary.