Labour Court Database
File Number: CD8756
Case Number: LCR11080
Section / Act: S67
Parties: IRISH SHELL LTD. - and - ITGWU
COMPENSATION FOR LOSS OF GUARANTEED OVERTIME BY WAY OF A LUMP SUM
9. The Court, having considered the submissions made by the
parties, is of the view that the claimants will not suffer any
loss of overtime earnings arising from the Agreement of November,
1986 and recommends that they accept the Company's offer in
settlement of their claim.
Division: Mr Fitzgerald Mr Collins Mr Devine
Text of Document__________________________________________________________________
CD8756 THE LABOUR COURT LCR11080
CC862023 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR11080
Parties: IRISH SHELL LIMITED
IRISH TRANSPORT AND GENERAL WORKERS' UNION
1. Claim on behalf of three drivers for a lump-sum payment in
respect of loss of guaranteed overtime.
2. The workers concerned drove a particular type of vehicle which
carried hose reel equipment. They were engaged in servicing the
smaller drop part of the Company's diesel oil trade in Dublin City
and other locations in the area where access by bigger type
vehicle was not possible. By agreement each of these workers
received one hour guaranteed overtime per day for each day they
operated these lorries, which on average was four days per week,
each day being of 10 hours duration.
4. Because this type of operation was proving uneconomic for the
Company it decided to transfer this business to its authorised
distributor in Dublin. The transfer was negotiated as part of the
phase 11 Productivity Agreement concluded in November, 1986, which
yielded an increase of #20 per week on basic pay to all drivers
and operatives, including the workers involved in this claim.
5. Arising from the transfer of the small drop business to the
distributor it was no longer necessary for the Company to retain
the hose reel vehicles in its fleet and the three workers
concerned were transferred to the general pool of drivers in the
Company where they now work a two cycle shift.
6. The Union, on behalf of the workers concerned, served a claim
on the Company for the payment of a lump-sum of #6,000 to each
worker in respect of the loss of four hours guaranteed overtime
per week, calculated on the basis of a three year period. The
Company rejected the claim but in the course of negotiations at
local level offered to phase out the guaranteed overtime working
over a period of three years. This was rejected by the Union and
as no agreement could be reached directly between the parties the
matter was referred, on 9th December, 1986, to the conciliation
service of the Labour Court. At a conciliation conference, held
on 22nd January, 1987, the Company, in a final effort to reach
agreement on the matter offered to phase out the guaranteed
overtime working over a four year period. This was also
unacceptable to the Union and the claim was then referred to the
Labour Court for investigation and recommendation. The Court
investigated the dispute on 2nd March, 1987.
7. (i) In the agreed minutes of a meeting between the Company
and Union in May, 1986, on the question of the small
drop deliveries, the Company recorded the following:
"B 2 Small Drop Deliveries - Agreed. The question
of some benefits to the three particular drivers
engaged on small drop deliveries, together with
their new shift patterns, needs to be resolved."
The question of the shift pattern in respect of the
workers concerned was resolved in December, 1986 and
the only issue which remains to be resolved is the
matter of some benefits to these individuals for the
loss of the guaranteed overtime. Therefore, the claim
by the Union for a lump-sum payment to the workers
concerned by way of compensation for the loss of the
overtime in question is fully justified.
(ii) Company records confirm that the Company gave away the
small drop delivery work to its authorised distributors
under the heading of re-organisation in the Phase 11
Productivity Agreement. This change was directly
responsible for the loss of two jobs out of a total of
19 lost under the terms of this Agreement and
therefore, has realised savings for the Company.
(iii) The Company's offer to phase out the guaranteed
overtime working over a period of four years as a way
of compensation (details supplied to the Court) is
totally unacceptable as all drivers in the Company
currently work an average of seven hours overtime per
week. While this overtime is not guaranteed it would
nevertheless, negate the effects of the guaranteed
overtime on offer to the workers over the next four
years resulting in no cost to the Company.
(iv) The Company claims that these workers are better off as
they are now in receipt of a shift premium. However,
this payment is made in recognition of the
inconveniences and the un-social hours associated with
shift working. Such payments cannot be offset in any
way against a genuine claim for compensation for the
loss of guaranteed overtime hours. Also, by changing
from day work to shift working the workers have lost
the second daily meal allowance which in the case of
drivers is tax free.
(v) Reference has been made by the Company to the fact that
the workers received a basic pay increase of #20 per
week under the Phase 11 Productivity Agreement.
However, all drivers in the Company received this
increase in return for accepting the terms of that
(vi) The guaranteed overtime in question was included in the
calculation of workers' holiday pay, as provided for in
Labour Court Recommendation No. 7889. The workers are
now being asked to relinquish this right without
receiving anything in real terms, in turn.
(vii) The Court, in numerous recommendations, (details
supplied to the Court) has recommended in favour of the
payment of compensation for the loss of overtime
(viii) The compensation claimed is in respect of the removal
of an agreement guaranteeing overtime, which can only
be compensated for by the Company buying out this
guarantee by way of a lump-sum, once off payment.
Therefore, in the interest of justice the Union's claim
should be conceded.
8. (a) The Company considers that the loss suffered by the
workers through the removal of the guaranteed overtime
in question has been addressed by virtue of the fact
that they have received a #20 increase in basic pay and
are now paid a shift premium of #54.31 per week
following their transfer from day work to a two cycle
shift roster. In addition, they now have the