Labour Court Database __________________________________________________________________________________ File Number: CD87223 Case Number: LCR11121 Section / Act: S67 Parties: H. LYONS & CO LTD - and - IDATU |
Dispute concerning the level of redundancy compensation payable to a worker.
Recommendation:
5. The Court having considered the submissions from both parties
recommends that the Company restore the offer of statutory
redundancy plus 60% rebate giving a total payment of #1,273.81 and
that the Union accept the amount in full settlement.
Signed on behalf of the Labour Court
Evelyn Owens
---------------------
16th April, 1987
U.S./M.D. Deputy Chairman
Division: Ms Owens Mr McHenry Mr Devine
Text of Document__________________________________________________________________
CD87223 THE LABOUR COURT LCR11121
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. 11121
Parties: HENRY LYONS & COMPANY LIMITED
and
IRISH DISTRIBUTIVE & ADMINISTRATIVE TRADE UNION
Subject:
1. Dispute concerning the level of redundancy compensation
payable to a worker.
Background:
2. The worker concerned was employed as a charge hand in the
sports department of the Company on a wage of #144.75 per week.
Her employment was terminated by reason of redundancy in November,
1985. The Company offered to pay redundancy compensation of the
statutory amount #796.13. This was rejected by the Union, who
sought compensation at the rate of 4.50 times the statutory amount
(#3.582.58) and would accept payment of 2 equal instalments, the
first on date of redundancy and second and final phase on a date 3
months later. The Company responded with an offer of the
statutory amount plus the 60% rebate which they would receive from
the Department of Labour making a total of #1,273.81. As this did
not meet the Unions's aspirations, both parties agreed to refer
the issue to the conciliation service of the Labour Court on 8th
November, 1985. A conciliation conference was held on 15th
January, 1986 at which the Union reserved its position. Following
further inconclusive local talks the Union requested the referrel
of the case to the Labour Court for investigation and
recommendation. This request did not reach the Court and at the
end of 1986 the Union reactivated their request. In March, 1987
the Company acceded to this request and a Labour Court hearing was
held in Carrick-on-Shannon on 31st March, 1987.
Union's arguments:
3. (a) The Union's claim for 4.50 times the statutory amount is
based on an established and agreed formula on
redundancy which was reached with the Company in 1982.
This formula applied to subsequent redundancies.
(b) At local talks subsequent to the conciliation
conference the Union modified its claim to 3 times the
statutory amount in a genuine effort to meet the
Company. The decision to compromise was in recognition
of the Company's difficulties by reducing the cost of
future redundancies which were pending, and helping to
maintain as many jobs as possible.
Company's arguments:
4. (i) The Company accepts that they have paid enhanced
redundancy payment compensation in the past. However
circumstances have now changed for the worse due to
adverse trading conditions and increased costs.
(ii) Subsequent to the worker concerned being made
redundant, the Company was compelled to make a further
14 workers redundant over the next nine months. These
workers were paid statutory redundancy only. This was
all the Company could afford in order to survive and
preserve the maximum amount of jobs possible.
RECOMMENDATION:
5. The Court having considered the submissions from both parties
recommends that the Company restore the offer of statutory
redundancy plus 60% rebate giving a total payment of #1,273.81 and
that the Union accept the amount in full settlement.
Signed on behalf of the Labour Court
Evelyn Owens
---------------------
16th April, 1987
U.S./M.D. Deputy Chairman