PERMANENT ARBITRATION TRIBUNAL
PART AWARD
R.N. 569
H. Balgobin - President
M. Serret
H. Seebaluck
Parties
Union of Bus Industry Workers
And
1. National Transport Corporation
2. United Bus Service Ltd.
3. Triolet Bus Service Ltd.
4. Rose Hill Transport Ltd.
Terms of Reference
1. Whether the 2 months overseas leave should be with pay.
2. Whether drivers and conductors should be paid overtime for all hours of work performed in excess of 8 hours daily, taking into account spread over as being hours of work.
3. Whether all workers who have been employed on a monthly basis should, from their quantum of annual leave entitlement in a year be allowed to take 10 annual leaves for emergency purpose.
4. Whether the restriction for not granting annual leave:
(a) for traffic section during the period beginning on 15 December in a year and ending on 15 January in the subsequent year;
(b) for Administrative Section and Maintenance and Workshop Section during the month
of December and January of any year;
should be removed.
5. Whether all workers above the age of 50 should be made to undergo a complete medical check up including eyesight test every year at the expense of the employer.
6. Whether all employees should be provided with glasses at the employer's expense where required.
7. Whether workers should be allowed to opt for retirement after 30 years service with payment of a gratuity.
8. Whether all employees in the Maintenance and Workshop Section should be granted three overalls and three pair of boots every year.
9. Whether all employees in the traffic section should be granted three polyester suits and three pair of shoes every year.
10. Whether all workers in the administrative section should be granted two pairs of shoes and three uniforms every year.
11. Whether a worker who is scheduled to work when cyclone warning Class III or IV is in force should be allowed reasonable time to assume duty after a cyclone working Class III or IV has been removed.
12. Whether all workers should be provided with a raincoat every two year.
13. Whether the exercise for the upgrading of workers in the Maintenance and Workshop section should be carried out every year.
14. Whether the employers should grant to workers a wage increase of 26% as from January 1997.
15. Whether the workshop supervisor should be entitled to a yearly increment of RslOO up to 5 years.
16. Whether the employer shall employ, on a monthly basis, not less than 7 conductors and 7 drivers for every 5 buses.
17. Whether the normal days work for casual drivers and conductors should be 8 hours of actual work.
18. Whether every worker should be given 3 days leave with pay on the occasion of the death of his immediate relatives.
19. Whether on the occasion of his wedding a worker should be given one week's leave with pay.
20. (a) Whether a worker who works on a Public Holiday, other than a Sunday should be
entitled to one day's rest in the following week;
(b) Whether a worker who has notified his employer in writing, at least one week in advance, of his intention not work on a Public Holiday, should be paid one day's normal wages.
The Tribunal has decided to deliver a part-Award in relation to dispute 14 which concerns a demand for a wage increase.
Dispute 14
"Whether the employers should grant to workers a wage increase of 26% as from
January 1997."
1. According to the Union the latest exercise of revision of salary in the Public Transport Industry was carried out by the Permanent Arbitration Tribunal in the light 4 of a dispute between the same parties (RN 315) where the Union had claimed a wage increase of 30% as from 1 January 1992. The union avers that in its Award at paragraph 120 the Tribunal awarded that the Respondents should grant to the workers concerned a 14% wage increase.
2. The Union supports its demand by citing the comments and findings of the Tribunal when considering the demand for a wage increase of 26% (RN315):-
"It cannot be disputed that the transport system needs to undergo extensive changes and until the situation improves we must tread with caution
The Tribunal accepts that there are distortions between the salary structure prescribed by the P.R.B for public sector employees and the minimum salaries prescribed by the Remuneration order for the Public Transport Industry."
The Tribunal finds, however, that the present financial situation of the Bus Companies is such that it is not possible to grant the totality of the claim before it."
3. The Union claims that when awarding the wage increase of 14% on 19 August 1994 (RN315), the Tribunal recognised that there were distortions between the salary structure prescribed by the P.R.B. for Public Sector Employees and the minimum salaries prescribed by the Remuneration Order for the Public Transport Industry.
4. The Union avers that when granting the 14% wage increase in two steps the Tribunal invoked the then financial situation of the Bus Companies, thus recognising that a further increase was due and that quite apart from the 5 disparity between the wages obtaining in the Public Sector and in the Bus Industry, there is a wide differential in terms of fringe benefits between the grades which according to the Union can be quantified at over 40%.
5. This differential in fringe benefits is according to the Union as follows:
(a) In the public Sector, employees enjoy six months sick leave on full pay and six months on half pay with no attendance qualification required, whereas in the Bus Industry Workers get only 21 days sick leave on full pay and 30 days on half pay.
(b) In the Public Sector workers get 30 days accumulated leave annually cumulative up to 120 days, whereas in the transport Industry no such provision exists.
(c) In the Public Sector workers get Passage Credits after a certain number of years of service which is refundable on retirement if unused, whereas no such provisions exists in the bus industry.
(d) In the Public Sector workers enjoy overseas leave of up to 4 months on full pay, whereas Bus Industry workers get only 2 months overseas leave, and that two on payment of only 1 month's basic pay.
(e) In the Public Sector workers enjoy the provisions of the Widows and Orphans Pension Fund, whereas this does not apply in the Bus Industry.
(f) In the Public Sector workers enjoy a non-contributory pension on retirement representing a proportion of their retiring salary which normally works out at two-thirds, and in addition they draw a Lump Sum on retirement; whereas in the Bus Industry, there is no such provision for non contributory pension and lump sum. Only the National pension Scheme applies, which a contributory pension, much less favourable than the Public Service Pension. It has been estimated that the Public Sector Pension and Lump Sum represents over 25% of the monetary salary of employees.
(g) In the Public Sector there is provision for employees to retire as from the age of 45 or
after completing a certain number of years of service, whereas in the Bus Industry a worker cannot retire before the age of 60.
(h) In the Public Sector employees who have to travel at odd hours when buses are not
available are refunded taxi fare or paid Motorcycle Allowance, where applicable, whereas in the Bus Industry employees who work on shifts almost always have to travel at odd hours. i.e. early morning or late night and have to manage on their own, no Taxi Fare or Motorcycle allowance been paid.
(i) In the Public Sector employees get soft loans to purchase motorcycles or cars duty free where applicable, whereas neither soft loans nor duty free facilities are extended to the Public Transport Industry.
(j) In the Public Sector employees who work overtime get one and a half pay before
18.00 hrs, double pay after 18.00 hrs and triple pay after 22.00 hrs, whereas in the Public Transport Industry employees have to perform a global amount of 40 hours per week for overtime to start reckoning and the hourly rate to be paid at time and a half. If they have not performed 40 hours work in a week and they do perform overtime on a particular day the overtime hours are paid at normal rate.
(k) In the Public Sector, in appropriate cases, study leave is granted with full pay,
whereas this facility is non-existent in the Public Transport Industry.
(l) The meal allowance paid in the Public Sector is about Rs50/- whereas in the Bus Industry it is Rs20/-.
(m) In the Public Sector employees do not normally work on Sundays and Public Holidays, whereas in the Bus Industry employees are compelled to work on those days and this on account of the very nature of the Industry.
(n) In the Public Sector the system of spread over does not exists whereas it is rampant in the Bus Industry.
(o) Public Sector workers put in only 35 hours work in a week, whereas in the Bus
Industry workers have put in sometimes 50 hours work, the 10 extra hours being remunerated at normal rate as spread over.
6. The Union states that the comparison to the made between the Public Sector and the Bus Industry can be highlighted by looking at the wages obtaining for Ambulance Drivers on the one hand and Bus Drivers on the other. The top salary of an Ambulance Driver is Rs6,400/- whereas that of a Bus Driver is Rs5,062.20.
7. The ability of the employer to pay the increase depends on the structure of Bus Fares approved by the Government. The Union is ready and willing to support a request by the Industry for an increased fare structure to include increase in salaries to be awarded by the Tribunal.
8. The Union invites the Tribunal therefore, to bring Bus Industry Salaries in line, as far as possible, with what obtains in the Public Sector. It will be according to the union for the Industry, thereafter, to claim an increase in Bus Fares based on an increase in their costing. The Union states that it will give its full support to such a request so that the Industry can survive.
9. It is further claimed that the situation prevailing at present amounts to workers of the Bus Industry subsidising other workers in the country by forgoing their rightful wages.
10. The United Bus Service Co. Ltd. (UBS) states that it is vital that any increase of wages be met from additional funds and funding must be simultaneous with the coming into effect to any award regarding increase to wages.
11. It is claimed that if the demand for increased wages is granted with effect from January 1997 the arrears would amount to Rs28,483.000.
12. The National Transport Corporation (NTC) states that it does not deny the fact that there are distortions between the salary structure of National Remuneration Board (NRB) governed staff and Pay Research Bureau (PRB) governed staff. In this connection the NTC has submitted the following:-
IMPACT OF 26% INCREASE IN WAGES ON ACTUAL COSTS
NOS / BASIC PAY / P.H/R/DAY / ATTENDANCE / TOTAL / END OF YEAR / NPF + EWF + / TOTAL / 26%O.Time Ab. Hrs / BONUS / BONUS 1/12 / Levy 9.5%
DRIVERS / 949 / 55,614,414 / 18,219,282 / 2,780,721 / 76,614,417 / 6,384,535 / 5,283,369 / 88,282,321 / 22,953,403
CONDUCTOR / 963 / 52,372,494 / 17,157,229 / 2,618,625 / 72,148,348 / 6,012,362 / 4,975,387 / 83,136,097 / 21,615,385
T.SUPERVISORS/ / 125 / 8,284,428 / 2,713,979 / 414,221 / 11,412,628 / 951,052 / 767,021 / 13,150,701 / 3,419,182
T.OFFICERS
WORKSHOP / 529 / 29.495,205 / 9,662,629 / 1,474,760 / 40,632,594 / 3,386,050 / 2,802,044 / 46,820,688 / 12,173,379
CASHIERS / 19 / 1,307,880 / 428,461 / 65,394 / 1,801,735 / 150,145 / 124,249 / 2,076,129 / 539,793
ADMINISTRA VIE / 27 / 1,498,495 / 490,907 / 74,925 / 2,064,327 / 172,027 / 142,357 / 2,378,711 / 618,465
STAFF
TOTAL / 2612 / 148,572,918 / 48,672,487 / 7,428,646 / 204,674,049 / 17,056,171 / 14,114,427 / 235,844,647 / 61,319,608
Monthly cost = Rs5,109,967
IMPACT OF FARE INCREASES ON REVENUE
TARIFF INCREASE / %INCREASE / TRAFFI C REVENUE / TRAFFI C / %INCREASE / REMARKSIN YEAR/MONTH / PRIOR TO INC.
(Monthly) / REVENUE / PORN T C
AFTER INCREASE
January 1996 / October 1996 / 30,113,032
November 1996 / 29,047,647
December 1996 / 29,849,647
22 / 18
February 1997 / 34,156,672
March 1997 / 38,321,427
April 1997 / 35,456,552
May 1994 / 24,943,126
June 1994 / 24,166,401
July 1994 / 24,440,958
August 1994 / 20 / 16
September 1994 / 30442,505
October 1994 / 30,981,012
November 1994 / 28,026,380
13. It is claimed that NTC has to face, inter alia, the following:-
- Illegal competition on all routes.
- Inadequency of road and bus terminal infrastructure.
- Acute road congestion.
- Inadequacies in present laws and regulations relating to the Bus Industry
- Increase in operational cost following the Value Added Tax, CPI increases since 1996, increases in
cost of labour, spare parts fuel and lubrication, tyres and tubes and overall expenses.
14. The Triolet Bus Service (TBS) claims that the Bus Industry is the only sector where wage increases have been granted by the National Remuneration Board on 3 occasions during the period 1985 - 1995 on top of other wage increases.
BUS INDUSTRY AWARDS
TABLE 2
DATE / BODY / % AWARD / INDEX1st August 1988 / N.R.B / 22 / 122
1st January 1992 / N.R.B / 15 / 140.3
1st September 1994 / P.A.T. / 7 / 150.1
1st March 1995 / P.A.T / 7 / 160.6
15. It is claimed that workers in the Bus Industry have obtained the following wage increase as from 1.8.1988:-
BUS INDUSTRY WAGE INCREASES