INDUSTRIAL RELATIONS ACTS, 1946 TO 2004
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
- AND -
SEAMEN'S UNION OF IRELAND
Chairman: Mr Duffy
Employer Member: Mr Doherty
Worker Member: Mr Nash
1. Company's Irish Sea Review.
2. The dispute before the Court arises from the Company's proposals, "Irish Sea Review", to outsource labour on its Irish sea vessels. The Union is seeking that the small number of members who wish to remain in their positions with the Company, be entitled to do so on a Red-Circled basis. The Company contends that the current business model and cost base on the Irish sea , if continued , will see the Company making losses by the end of 2007.
- The dispute could not be resolved at local level and was the subject of a Conciliation Conference under the auspices of the Labour Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on the 21st October, 2005, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 7th November, 2005, the earliest date suitable to the parties.
3. 1. The Company is not being asked to keep all its staff but to allow the small number who wish to remain with the Company to do so while retaining their current pay and terms and conditions of employment.
4. 1. Profits and RoCE (Return on Capital Employed) based on the current business model are trending downwards from 7.4% in 2003 to 5% in 2005, and to 1.2% at end of season 2007. The current and future negative returns do not meet the cost of capital. The rate of profitability necessary to allow the business to recover and renew its assets (ships) is 15% RoCE per annum. Corrective action must be taken immediately to reduce the seafaring cost base to match and beat the Company's major competitors and to use the savings to compensate staff who wish to leave voluntarily. Enabling price reductions to be made to attract and recover business, thus boosting profitability and saving the business.
It is noted that the only matter on which the Union wish the Court to recommend is its claim that those of its members who wish to remain with the Company retain their existing rates of pay and conditions of employment. In its presentation the Union assured the Court that the numbers likely to be affected by its claim is minimal in overall terms.
In these circumstances the Court recommends that this claim be conceded.
Signed on behalf of the Labour Court
11th November, 2005______________________
Enquiries concerning this Recommendation should be addressed to Joanne O'Connor, Court Secretary.