Labour Court Database __________________________________________________________________________________ File Number: CD87672 Case Number: LCR11564 Section / Act: S67 Parties: FRIENDS TRAINING WORKSHOP - and - FWUI |
Claim on behalf of a manager of a training centre and his secretary for enhanced severance terms.
Recommendation:
5. The Court noting the manner in which the Workshop was funded,
with particular reliance on AnCO, recommends that the parties
concerned in funding and running the workshop combine to pay the
claimants a lump sum calculated at a rate of 3 weeks' pay per year
of service (in addition to the statutory amount and also in the
case of the (Manager the lump sum set aside for pension).
Division: Ms Owens Mr Heffernan Mr Walsh
Text of Document__________________________________________________________________
CD87672 RECOMMENDATION NO. LCR11564
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: FRIENDS TRAINING CENTRE
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
AND
FEDERATED WORKERS' UNION OF IRELAND
SUBJECT:
1. Claim on behalf of a manager of a training centre and his
secretary for enhanced severance terms.
BACKGROUND:
2. The Friends Training Centre was established in October, 1979
on a voluntary basis by a group of persons who were concerned
about the plight of disadvantaged young people. The Centre was an
inner city project for disadvantaged young people, who left school
with such a poor standard of education that they had little hope
of employment or even access to training. The course was designed
to enhance their prospects of employment, further training, and
self realisation. The Centre was a registered charity, non-profit
making and operated completely on financial and technical
assistance from AnCO, based on the work being performed. Premises
were made available by the Society of Friends (Quakers) and the
Centre made a payment to cover wear and tear.
3. In 1986, due to problems of their own, the Society of Friends
decided to sell the premises. It was indicated to the workshop by
the sponsoring bodies that further grant aid would not be
available to finance its activities, should they decide to move
premises. The manager of the centre and a secretary were then
made redundant, and they received their statutory entitlements.
The manager was also allowed to keep the car which belonged to his
employers. (The market value of the car is contested, but was not
greater than #800). Because the manager was not in a pension
scheme, a sum of #600 per annum was set aside each year for him.
A sum of #3,500 is available for the manager when his dispute with
management has been resolved. The Union on behalf of the workers
are seeking enhanced redundancy payments. The Centre rejected the
claim. Agreement could not be reached at local level, and on 18th
June, 1987, the matter was referred to the conciliation service of
the Labour Court. A conciliation conference took place in Dublin
on 27th July, 1987. Agreement was not reached, and on 3rd
September, 1987, the matter was referred to the Labour Court for
investigation and recommendation. A Court hearing took place in
Dublin on 10th November, 1987. (Earliest date suitable to the
parties).
UNION'S ARGUMENTS:
4. 1. The redundancies were created solely as the result of the
sale of the workshop premises for which the Society of Friends
received the sum of #250,000 and staff were promised,
verbally, that enhanced severance payments would be offered to
them following the completion of all transactions.
2. Enhanced severance terms are a common feature of
redundancy settlements and the most recent survey conducted by
I.R.N. covering the six months period November, 1986 - end
April, 1987, revealed that out of 26 cases, 14 or 53.8%
provided settlements of between 2 and 6 weeks' pay per year of
service. A further 2 (i.e. 7.7%) provided for "over six
weeks' pay per year of service. (Details with the Court).
3. Due to the particular circumstances of this case,
settlement terms should be at the upper limits of current
severance terms settlements.
CENTRE'S ARGUMENTS:
4. 1. The Centre gave full backing to the manager's suggestion
that alternative premises be sought. The manager and
committee finally settled on premises in Pearse Street as
being the most suitable. At a later stage in the proceedings
however, the manager informed the committee that he did not
wish to proceed. Following this it was decided to close the
Centre.
2. All staff received statutory redundancy payment. In
addition the manager, because of his position, was allowed to
keep the car that had been provided. Finally due to the
uncertain nature of the Centre and because of the manner in
which it was funded, the committee had set up a fund for the
manager with a view to making a payment to him on termination.
A sum of #600 per year was paid by the Centre into the fund
and a total of #3,529 is now held in the fund for him. This
was a particular arrangement made in respect of the manager.
The secretary to the manager, along with the other staff,
received her statutory redundancy entitlement. This amounted
to #565.49.
3. The Centre respectfully request that the Court would
recommend that the payments in respect of redundancy as
outlined be accepted in this case. The Centre is a non profit
making charity set up on a voluntary basis to assist the
disadvantaged. All employees of the Centre were aware of the
uncertain nature of their employment, due to the very nature
of the centre, a fact, which was reinforced at various stages.
Having regard to all the circumstances, there is absoloutely
no justification for a claim for enhanced redundancy payment
as a result of a loss of employment.
RECOMMENDATION:
5. The Court noting the manner in which the Workshop was funded,
with particular reliance on AnCO, recommends that the parties
concerned in funding and running the workshop combine to pay the
claimants a lump sum calculated at a rate of 3 weeks' pay per year
of service (in addition to the statutory amount and also in the
case of the (Manager the lump sum set aside for pension).
~
Signed on behalf of the Labour Court.
Evelyn Owens
___3rd___December,__1987. ___________________
P. F. / M. F. Deputy Chairman