Labour Court Database __________________________________________________________________________________ File Number: CD86876 Case Number: LCR10913 Section / Act: S67 Parties: HERTZ RENT A CAR - and - ITGWU |
Claim on behalf of one worker for enhanced redundancy payments.
Recommendation:
7. The Court, having considered the submissions made by the
parties, recommends that, in addition to his other entitlements,
the claimant be paid three weeks' redundancy per year of service
inclusive of the statutory redundancy amounts. The Court notes
that the Company has undertaken to clarify the claimant's position
regarding his eligibility for pension and also to provide a
reference within two weeks of the date of the hearing.
Division: Mr Fitzgerald Mr Heffernan Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD86876 THE LABOUR COURT LCR10913
CC861560 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. LCR10913
Parties: HERTZ RENT-A-CAR
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim on behalf of one worker for enhanced redundancy
payments.
Background:
2. In June, 1986 the Company informed the Union of the need for
one redundancy and stated that if no worker volunteered the
Company would use the criteria of skills, performance and
flexibility in choosing a worker to be made redundant and only
where all things were equal would it consider seniority for
retention in employment. There was no volunteer and the Company
did not proceed with the redundancy until September, 1986.
3. In September, 1986 the Company informed the Union that the
worker concerned had been chosen for redundancy. The Union
claimed a payment of six weeks' pay per year of service. The
Company made an offer for redundancy payment as follows:
.. up to three years at 4 weeks per year of service;
.. next three years at 3 weeks per year of service;
.. next three years at 2 weeks per year of service;
.. thereafter 1 week per year of service.
The above formula is inclusive of statutory redundancy
entitlements.
The Union sought to have the redundancy deferred as agreement had
not been reached. However the Company proceeded with the
redundancy which took effect on 29th September, 1986. At that
time the worker's basic pay was #194.55 and the worker received
approximately #11,000 as a total redundancy payment. The Union
claims that this payment should be increased by a further payment
of #8,000. The Company rejected the claim.
4. On 23rd September, 1986 the matter was referred to the
conciliation service of the Labour Court. A conciliation
conference was held on 15th October, 1986 but no agreement was
reached. On 10th November, 1986 the case was referred to the
Court for investigation and recommendation. A Labour Court
hearing was held on 1st December, 1986.
Union's arguments:
5. (i) The Company's offer is weighted in favour of workers
with shorter service. The worker has considerable
service with the Company and should now be adequately
compensated.
(ii) The worker has very little chance of getting
alternative employment.
(iii) The Company has treated the worker with contempt in
this matter.
(iv) The Union was willing to accept the additional #8,000
payment in two phases over the next two years. This
was a reasonable proposal.
Company's arguments:
6. (a) The Company held off the redundancy and thus provided
the worker with fourteen weeks' extra pay.
(b) The Company's offer of compensation is the most it can
afford in current circumstances without endangering the
job security of the remaining workers. The Company's
offer was fair and reasonable.
(c) The Company and the Group as a whole had a very bad
year in 1986. The Group has already had redundancies
in Italy, West Germany and the United Kingdom this
year.
RECOMMENDATION:
7. The Court, having considered the submissions made by the
parties, recommends that, in addition to his other entitlements,
the claimant be paid three weeks' redundancy per year of service
inclusive of the statutory redundancy amounts. The Court notes
that the Company has undertaken to clarify the claimant's position
regarding his eligibility for pension and also to provide a
reference within two weeks of the date of the hearing.
~
Signed on behalf of the Labour Court
Nicholas Fitzgerald
_______________________
Deputy Chairman.
14th January, 1987.
T.O'M./J.C.