Labour Court Database __________________________________________________________________________________ File Number: CD87527 Case Number: AD8778 Section / Act: S13(9) Parties: MILFORD BAKERY & FLOUR MILLS - and - ITGWU |
Appeal against a Rights Commissioners Recommendation (CM17,726) concerning additional severance payments.
Recommendation:
6. The Court finds that there is not adequate reason to alter the
Rights Commissioners Recommendation and decides accordingly.
Division: CHAIRMAN Mr McHenry Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD87527 THE LABOUR COURT AD7887
SECTION 13(9) INDUSTRIAL RELATIONS ACT, 1969
APPEAL DECISION NO. 78 OF 1987
Parties: MILFORD BAKERY & FLOUR MILLS P.L.C.
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
and
IRISH TRANSPORT AND GENERAL WORKERS' UNION
Subject:
1. Appeal against a Rights Commissioners Recommendation
(CM17,726) concerning additional severance payments.
Background:
2. This appeal concerns eight workers made redundant by the
Company as part of its plan to introduce an automated packing
plant in its mill department. The Union claimed severance terms
of six weeks' pay per year of service. The Company offered a
payment of #150 to each worker in addition to their statutory
redundancy entitlements. The Company also offered benefits to the
remaining workers. The Union rejected this offer.
3. The matter was referred to a Rights Commissioner for
investigation and recommendation. On 16th April, 1987 the Rights
Commissioner issued his recommendation as follows.
"Any significant additional burden on the Company in
severance payments could impede or even frustrate the
capital investment in new plant so any improvement in
the offer would have to be moderate. Therefore I
recommend that the ex gratia payment be increased to
#250.00".
The workers were made redundant on 25th May, 1987 and were paid
their statutory redundancy entitlements. The terms of the Rights
Commissioners Recommendation were applied to the workers. On 1st
July, 1987 the Union appealed against the terms of the
recommendation, to the Labour Court in accordance with Section
13(9) of the Industrial Relations Act, 1969. The Court heard the
appeal on 9th September, 1987 in Letterkenny.
Union's arguments:
4. (i) The workers gave good service to the Company and should
be adequately compensated. The sum recommended in the
Rights Commissioner's Recommendation was grossly
inadequate.
(ii) The Company did agree to give first option to its
former employees should vacancies arise on a permanent
or temporary basis. Nevertheless the workers
employment prospects in the Company could be hanging on
a thread. There would be no prospects of getting work
elsewhere in the immediate area given the present
economic climate.
(iii) The Union claimed a redundancy payment of six weeks'
pay per year of service. This is not greatly out of
line with redundancy terms paid to employees in the
milling industry and in local employments in the recent
past.
Company's arguments:
5. (a) The Company is experiencing intense price competition
in all areas of its business (details supplied to the
Court). This is reflected in the financial losses
returned by the mill department. The Company's future
and the jobs of those now employed could only be
secured by the installation of new plant and a
reduction of manning levels.
(b) Under current business conditions the Company could not
afford to pay severance terms in excess of those
recommended by the Rights Commissioner.
DECISION:
6. The Court finds that there is not adequate reason to alter the
Rights Commissioners Recommendation and decides accordingly.
~
Signed on behalf of the Labour Court
John M. Horgan
__________________________
Chairman.
7th October, 1987.
T.O'M/J.C.