Ryanair was given leave by the High Court yesterday to challenge the findings of the report of the Government-commissioned inquiry into the dispute which led to the closure of Dublin Airport last March.
The dispute between Ryanair and SIPTU over the pay and conditions of Ryanair's baggage-handlers led to the closure on March 7th. The inquiry's report, published on July 15th last, said "primary responsibility" for that situation lay with Ryanair management and SIPTU.
In court yesterday Mr Bill Shipsey SC, for Ryanair, claimed there were "manifest errors" in the report's purported finding that the pay rates of Ryanair's ground handling agents or GHAs (baggage-handlers) were less than the pay of GHAs employed by Servisair and Aer Lingus.
Counsel said the report based its findings on the issue of pay for GHAs on figures produced by the Irish Productivity Centre. That body was commissioned by the inquiry to undertake a study of Ryanair GHAs and "Team Leaders".
Ryanair claimed that the inquiry wrongfully instructed or permitted the IPC to include in its study a comparison with pay of ground handling staff with British Midland. At no time was the pay of BM ground handling staff an issue between SIPTU and Ryanair when comparing the pay levels of Ryanair GHAs, the airline claimed.
Mr Shipsey said the IPC had disregarded "certain financial bonuses" when compiling figures regarding the rates paid to Ryanair GHAs.
Insofar as the inquiry report relied on the IPC findings on pay for GHAs, the report was ultra vi- res the inquiry, counsel submitted. The conclusions drawn by both the IPC and the inquiry were erroneous, arbitrary, unreasonable or irrational.
Ryanair had sought to correct the errors in the report but got no opportunity to do so, counsel said.
He submitted the matter was "critical" because SIPTU had last Friday written to Ryanair on behalf of its members calling on the airline to implement the inquiry's findings. The union had said if that was not done it would recommend industrial action.
SIPTU has claimed Ryanair GHAs are paid less than their counterparts with Servisair or Aer Lingus.
Mr Justice Geoghegan gave Ryanair leave to seek declarations and orders against Mr Philip Flynn and Mr Dan McAuley, who compiled the report, after having been appointed by the Minister for Enterprise and Employment last March to inquire into the dispute.
On the application of Mr Shipsey, for Ryanair, he granted leave to seek an order quashing the report and/or specified paragraphs of it. Leave was also given to seek declarations that the report and/or the specified paragraphs are ultra vires in that there are "manifest errors" in those paragraphs and that the inquiry members failed to apply the rules of natural and constitutional justice in preparing and finalising the report and/or in particular the paragraphs complained of.
In a statement grounding the application, Mr Michael O'Leary, Ryanair's chief executive, outlined the background to the dispute with SIPTU over pay and conditions for GHAs.
He said "third party" ground handling operations at Dublin Airport were at one time the exclusive monopoly of Aer Lingus. In about 1993 Servisair started such operations. It was the only independent third-party ground handler at the airport and as such was the only real alternative to the self-handling currently carried out by Ryanair.
For that reason, and because the employee structure within Servisair was similar to Ryanair, Servisair is and was at all material times the only true comparator with regard to pay and conditions of Ryanair GHAs, he said.
He displayed a table comparing rates paid to GHAs with Ryanair, Aer Lingus and Servisair, as of December last, and said it showed Ryanair's levels were higher. The rates had since changed, with both Servisair and Ryanair increasing them.
Mr O'Leary said it was entirely inappropriate for the inquiry into the Dublin Airport dispute to request the IPC to take account of the position of comparable staff with British Midland.
He said Ryanair was never given the terms of reference provided by the inquiry to IPC. He said the information regarding pay for GHAs as set out in the IPC report was inaccurate and based on inadequate reasoning, and it was unreasonable and irrational for the inquiry to act on the basis of that information.
Mr O'Leary said the pay issue was of fundamental importance to Ryanair. The airline had consistently indicated to its employees that its GHAs were better paid than equivalent employees with Servisair. It was essential for the future of Ryanair, as regards its relations with its employees, and harmonious industrial relations generally, that its undertakings on pay issues be seen to be respected.
He said Ryanair was "seriously prejudiced" as a result of the negative conclusions of the inquiry and would continue to be unless those conclusions were corrected.