Decision time for Cliffs’ SIPTU workers

SIPTU workers at the Cliffs of Moher Visitor Centre are to meet in the coming days to consider whether they will reject or accept a recent Labour Court recommendation.

The Labour Court recommended that both parties engage in discussions with a view to agreeing an interim improvement in pay and conditions. It comes following a hearing on June 14 last and stems from a claim by the SIPTU union on behalf of its members for parity of pay, sick leave and premium payments with local authority employees. The 16 SIPTU workers concerned are employed by Cliffs of Moher Centre Limited.

As the company was set up to operate the Cliffs of Moher Visitor Centre and the building and surrounding area is owned by Clare County Council, the union argues their members are de facto employees of the county council and that the company “is no more than a shell company whose membership is also linked to Clare County Council”.

The company argues it is a private legal entity, which is entirely distinct and separate in legal personality from Clare County Council.
Following its third stint at the Labour Court, the court recommended that the parties engage in discussions with a view to agreeing an interim improvement in pay and conditions of employment. It recommends the matter be reviewed again two years after the conclusion of this round of negotiations, in the context of the circumstances then prevailing.

Following a previous Labour Court hearing on August 5, 2011, external independent financial assessors were appointed to carry out a financial assessment of the company. The assessor’s report was issued but 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 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on June 14, 2012, whereby the union is seeking the implementation of LCR 19772 from May 2010, which set out a view of the appropriate rates of pay that should apply in this company. The employees contend the claim is sustainable given the revenue streams generated by the centre.

The company argued that it is not in a position to implement LCR19772 as to do so would render the business unsustainable and jeopardise the continued employment of its 56 employees. It also did not accept that the local authority should be used as the comparator for pay and condition purposes.
The court noted the independent financial assessment has established that the present financial position of the company could not sustain a move to those pay rates or conditions of employment in the short to medium term.

The estimated cost of implementing the SIPTU claim was indicated in the independent financial assessment at €487,000 at current pay rates. 
The court also noted management’s willingness to negotiate an improvement in pay and conditions, consistent with the prudent management of the company’s finances. It also noted the willingness of the union to recognise the company does not have the financial capacity to meet its claim in full at this time.

Speaking about the issue, Gerard Dollard, director Cliffs of Moher Centre Ltd said, “The company’s primary aim is to maintain employment and to operate one of Ireland’s most popular attractions to a world-class standard on a financially sustainable basis.
“The company is open to enter negotiations with SIPTU having regard to the overall management of the company’s finances and the financial capacity of the company,” he added.

A SIPTU spokesperson said, “We’ve received a copy of the recommendations and we will now enter a process with our members whereby we will discuss the Labour Court recommendation and then we will ballot for acceptance or rejection of same.”