Labour Court Database __________________________________________________________________________________ File Number: CD86980 Case Number: LCR11009 Section / Act: S67 Parties: HALAL MEAT PACKERS - and - ITGWU |
REDUNDANCY COMPENSATION
Recommendation:
5. The Court is of the view that the Company's offer of 3 week's
pay per year of service, plus statutory, is reasonable. However,
the Court recommends that for the purpose of calculating the
amounts due a figure of #154.75 per week should apply.
Division: Ms Owens Mr McHenry Mr Walsh
Text of Document__________________________________________________________________
CD86980 THE LABOUR COURT LCR11009
C861815 INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
RECOMMENDATION NO. 11009
PARTIES: HALAL MEAT PACKERS LIMITED
(Represented by the Federated Union of Employers)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Claim, on behalf of 9 inter-continental truck drivers
concerning redundancy compensation.
Background:
2. Prior to November, 1986, the Company employed
inter-continental truck drivers who were mainly engaged in the
delivery of meat to the European market, mainly Belgium, France,
Germany and the U.K. Their basic pay was #124.75 and they
received a daily expense allowance of #27.00 when engaged in
inter-continental work. Outside contractors were also used by the
Company for transportation purposes. In September, 1986, the
Company decided to phase out its own transport and the drivers
(who have service of between 2 and 7 years) were offered the
following alternatives:-
(a) redundancy (from January, 1987)
(b) alternative work within the plant
(c) entering a driver-owner relationship with the Company.
All drivers opted for redundancy and discussions then took place
on redundancy terms. On 4th November the Company offered 3 weeks
pay per year of service plus statutory entitlement. Basic pay was
the figure to be taken in calculation of lump sums. The Union
sought a minimum of 4 weeks pay per year of service plus statutory
entitlements, calculations to be made on the basis of basic pay
(#124.75) plus daily allowance (#27.00). Its final position was
that the calculation should be based on a consolidated rate of
#200. No agreement was reached. On 7th November the drivers
placed an unofficial picket on the Company's premises and the
plant was closed until 17th November. Prior to return to work the
Company and the Union agreed to a set of proposals which provided
that:-
"The transport redundancies which formed the basis of
the unofficial action will take effect from Monday
17th November, 1986. The employees involved will
receive their minimum notice pay on that date. The
question of the terms of the redundancy will be agreed
or determined at the conciliation conference or the
Labour Court".
The matter had been referred to the conciliation service of the
Labour Court on 5th November, 1986, and was the subject of a
conciliation conference on 9th December, 1986. The positions of
the parties remained unchanged, however and the matter was
referred, on 9th December, 1986, to the Labour Court for
investigation and recommendation. A Court hearing took place on
27th January, 1987, in Athlone.
Union's arguments:
3. (i) The Union considers that its claim for four week's pay
per year of service plus statutory entitlements is in
line with settlements generally. The workers
concerned do not have very long service and do not
have good job prospects. Furthermore, the claim is
not much in excess of the Company's offer.
(ii) The Union believes that redundancy payments should be
based on a figure of #200 per week. The basic pay
figure of #124 is extremely low for this type of work
and is out of line with the rates of drivers elsewhere
(details supplied to the Court). This rate would not
have been accepted but for the daily allowance which
supplemented it. In the past the Company has stated
that this allowance constituted part of take-home pay,
when the drivers sought increased pay.
Company's arguments:
4. (a) The Company considers its offer to be a fair one. The
claim for inclusion of the expense allowance in the
calculation of lump sums is considered to be
unreasonable.
(b) The Company has already paid the employees their
statutory notice and redundancy entitlements. It
approached the question of redundancies in good faith
and with a lengthy period for discussions. The
individuals in question took precipitative action in
November, almost two months before they were to be
made redundant. This action was in clear breach
of procedure and resulted in serious financial loss to
the Company which was at the peak of its output at the
time.
RECOMMENDATION:
5. The Court is of the view that the Company's offer of 3 week's
pay per year of service, plus statutory, is reasonable. However,
the Court recommends that for the purpose of calculating the
amounts due a figure of #154.75 per week should apply.
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Signed on behalf of the Labour Court
27th February, 1987 Evelyn Owens
A.K./P.W. ---------------
Deputy Chairman