FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : BUS EIREANN - AND - 1340 DRIVERS (REPRESENTED BY NATIONAL BUS AND RAIL UNION SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION) DIVISION : Chairman: Mr McGee Employer Member: Ms Doyle Worker Member: Ms Ni Mhurchu |
1. Cost-Recovery Plan - Drivers
BACKGROUND:
2. The dispute concerns a proposed cost-recovery plan for drivers in Bus Eireann due to what the Company cites as a very serious deteriorating financial situation. The Company has three main areas of operation in its business - a Public Service Obligation (PSO) services (social services), the inter-urban coach services "Expressway" and the School Transport Scheme.
The Company listed the following number of areas which need to be addressed:Service withdrawals/network restructuring, pay, overtime working, self-certified illness, ban on recruitment, compensation for loss of earnings, disturbance allowance, expenses, shift payments, income continuance scheme, working time/driving hours legislation, working arrangements, more effective driver utilisation, timetable and service changes, rotating rest days, spare drivers, rotation of boards, two-person operation staff, CIE tours international, on-going economic outlook.
Part of the Company's proposal is to reduce the number of employees by 320 (of which 220 will be drivers) and the number of vehicles by 163 as result of a fall-off in the demand for its services. The Company's projected deficit for 2009 is approximately €30 million. Whilst the Unions accept that the Company has financial problems they believe that the drivers are being asked to contribute to a disproportionate share of the savings. The Company is hopeful that a large number of drivers will take voluntary retirement and has offered 2 weeks' pay per year of service plus statutory entitlements. However, the Unions are seeking at least 5 weeks' pay plus statutory entitlements.
The dispute was referred to the Labour Relations Commission and a conciliation conference took place. As the parties did not reach agreement the dispute was referred to the Labour Court on the 29th July, 2009, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 25th August, 2009.
UNIONS' ARGUMENTS:
3. 1. The Company's proposals will mean a major reduction in earnings - up to €200 per week - for the workers concerned, something even the Company accepts. This will result from a number of issues, e.g. the Company refusing to pay the National Agreement payments due, reduction in shift/rota payments, proposal to do away with a daily travelling allowance and changes to the income continuance plan.
2. In order to avoid any compulsory redundancies the Company must put forward a reasonable voluntary redundancy package.
COMPANY'S ARGUMENTS:
4. 1. If the Company is to survive it will have to make major savings across all areas of its business. There has been a significant reduction in passenger numbers resulting in heavy financial losses. There is a projected loss of €30 million for 2009. The Company's main aim is to retain jobs into the future as far as possible but any reduction in funds will put these jobs in jeopardy.
2. Because of the current financial difficulties the Company will have to defer payment of the National Wage Agreement for 2009. If the cost-recovery plan is implemented quickly the situation can be examined again next year.
RECOMMENDATION:
Having heard the submissions made by all parties in this case, the Court is extremely concerned about the perilous position and the delays and total lack of meaningful engagement between the parties on what is, without doubt, a joint problem. In order to move the situation forward, the Court recommends as follows:-
Early discussions should take place between the parties on all of the matters in dispute. These should be facilitated by an independent chairman agreed by the parties. Should the parties be unable to agree on a Chairman, the Court will nominate a person to undertake the task. The discussions should be completed by the end of September, 2009. Any residual and defined issues remaining at that time should be referred back to the Court.
Signed on behalf of the Labour Court
Raymond McGee
3rd September, 2009______________________
CONDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.