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CWU Wins Labour Court Case Against United Airlines PDF Print E-mail
Friday, 09 December 2005

When staff members of United Airlines were told in July 2005 that their Clontarf-based call-centre would close, they were at a loss. Never having joined a Union before, staff members contacted the CWU and sought the Union’s help.

The CWU wrote to the Company and attempted to progress the matter in a constructive manner. However, the Company responded that it is “the policy of United Airlines to communicate directly with the employees on all issues pertaining to their employment and their terms and conditions of employment” and refused to negotiate with the Union.

As a result, the CWU referred the matter to the Labour Relations Commission (LRC) under Statutory Instrument 76 of 2004. Little progress was made at the LRC and so the matter went to the Labour Court under the Industrial Relations (Amendment) Act 2001 and the Industrial Relations (Miscellaneous Provisions) Act 2004.

However, on the week beginning 29 August, there was a very worrying development. The Company announced that it would be requiring staff members who are being made redundant to sign a waiver form. This form stated that the settlement is in “full and final settlement of all claims of whatsoever nature made … against the Company,” etc. The waiver went on to expressly state that the employee is debarred from claiming against the Company under seventeen separate pieces of employment legislation, in addition to any claims that arise at “common law, in equity, pursuant to statute”,… “and/or any amending legislation…or otherwise howsoever arising.” The waiver states that “if you choose not to sign the form of acceptance, you will receive your statutory and contractual entitlements only.”

Staff members were brought into the office, on a one-to-one basis, shown the waiver, and informed that they would have to sign this in order to get the extra week per year redundancy payment. This, in the Union’s view, was a blatant attempt to undermine the Labour Court process, and also represented an affront to Article 40.6.1 of the Irish Constitution insofar as it sought to circumvent the Labour Court process in circumstances where the Union was representing the employees concerned.

The Union lodged a formal complaint against the Company with the Health and Safety Authority as the Company’s attempt as outlined above caused enormous stress to the individuals concerned. The CWU also wrote to the Minister for Enterprise, Trade and Employment and to the Irish Congress of Trade Unions with a request that the matter be referred to the National Implementation Body.

The issue was raised with the media and appeared on the RTE Six-One News in addition to every Dublin radio station. By 4pm on the very same day that the Company announced the waiver, the Union had successfully got the Company to change its position.

The matter then went to the Labour Court and the Company hired, at great expense, one of the most expensive legal firms in Ireland and were represented on the day by a prominent barrister. Notwithstanding this, the Union argued its case fervently and contended that staffs’ loyalty over many years should be rewarded and in the end the Labour Court, having heard preliminary legal submissions and the facts of the case itself, awarded five weeks per year of service to all staff.

In the end, the Company agreed to negotiate a comprehensive deal, which encompassed many aspects of staff concern, including finishing times and tailored references, but only after it lost in the Labour Court.

Speaking in relation to the case, CWU’s Michael Bride stated, “staff members in United Airlines are to be commended for their solidarity and support for the Union and each other. It was this support that enabled the Union to play its cards close to its chest, forced the Company to withdraw the proposed waiver and provided the opportunity to successfully argue in the Labour Court on behalf of the employees concerned. The entire experience is a case study, if one were needed, of what can be achieved when Union members stick together.”

 
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