FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : DHL EXCEL SUPPLY CHAIN SOLUTIONS (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Doherty Worker Member: Mr Nash |
1. Pay
BACKGROUND:
2. The Airport Business Park facility operates as a warehouse and distributor of fashion and retail for the Deutsche Post Group within Ireland and employes 96 permanent employees.
The matter in dispute relates to Company proposals, which are due to the current downturn in business activity, to alter the method of calculation of pay, terms and conditions for 12 rigid and articulated lorry drivers operating out of the facility.
The dispute could not be resolved at local level and was the subject of two 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 27th February, 2009 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 23rd April, 2009.
UNION'S ARGUMENTS:
3. 1. The impact of the proposed changes on rigid lorry drivers pay would mean a reduction of up to €10k per year.
2. The stated position of the Union is that it will not agree or negotiate to any reduction in Workers pay and conditions.
COMPANY'S ARGUMENTS:
4. 1. The Business Survival Plan will help maintain existing and attract new customers, it will help guarantee employment and ensure the viability of the facility into the future.
2. The Company has a long history of negotiating cost reduction initiatives with the Union on behalf of other categories of staff at the same site. It should also be noted that the Company has implemented a pay freeze for all management grades.
RECOMMENDATION:
The matter before the Court concerns drivers’ terms and conditions of employment. The Company put forward a number of proposals to restructure the terms and conditions of employment of both Rigid Truck and Artic Truck Drivers, as part of its overall cost reducing initiative and review of operational costs, in order to ensure the ongoing viability of the business. The Union objected to a number of the proposals.
Having considered the oral and written submissions of both parties, the Court makes the following recommendations on the Company’s proposals:
Rates of Pay, Elimination of Early Start Allowances
The Company proposed to increase the drivers’ rates of pay and replace the current early start allowance with shift premia. The Company maintained that in order to meet the demands of its customers it needs total flexibility and co-operation from the drivers. The Union, on the other hand, submitted that drivers’ working hours on some routes can be very irregular and this has led to an uncertainty concerning starting times, on a daily basis.
The Court notes that the company’s proposals were the subject of negotiations last, in October 2008. Since then due to the decline in business the Company made a number of employees redundant and introduced short-time working for a defined number of weeks.
The Court is of the view that further refinement is needed of the Company’s proposals concerning drivers rates of pay; elimination of early start allowances and future earning potential for the drivers concerned. Therefore, the Court recommends that the parties should engage further with a view to developing further the proposal to introduce a shift system to meet the Company’s objectives going forward and secondly, to deal with the drivers need for certainty regarding their working hours, including starting times. The Court is of the view that it is unreasonable to expect drivers to be available at short notice for early start and not to have regularity regarding their normal starting time.
The Court is of the view that the parties should enter into these discussions along the lines indicated as a matter of urgency with a view to reaching agreement by no later than 22nd May 2009.
Hours of Work, Guaranteed Overtime, Loss of Earnings,
The Court notes management’s agreement that there will be no reduction of the 6 hours guaranteed overtime per week, therefore proposals included a 40 normal weekly working hours for drivers plus 6 hours overtime guaranteed, paid at time plus a half.
The Court also notes that in the event of a loss of earnings arising from the elimination of the early start allowance and its replacement with shift premia, the agreed loss of earning compensation formula will apply, as outlined in the Company’s letter to the Union dated 22nd October 2008.
Meal Allowance
The Court notes the agreement entered into between the parties on payment of meal allowances, as outlined in the Company’s letter to the Union dated 22nd October 2008.
Full Use of Company Drivers
In order to ensure the full use of the Company’s drivers, the Court recommends that the Company should commit to continuing the process in place of enabling drivers to obtain an articulated truck driver’s licence. Furthermore, the Court recommends that before consideration is given to the employment of agency drivers every effort should be made to offer such work to its own drivers, within the statutory working time limits.
The Court so recommends.
Signed on behalf of the Labour Court
Caroline Jenkinson
11th May, 2009______________________
JFDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to John Foley, Court Secretary.