Labour Court Database __________________________________________________________________________________ File Number: CD8858 Case Number: LCR11778 Section / Act: S67 Parties: ISAAC BECKETT LIMITED (IN LIQUIDATION) - and - IRISH DISTRIBUTIVE AND ADMINISTRATIVE TRADE UNION |
Claim on behalf of five workers for payment of arrears of wages.
Recommendation:
10. The Court, having considered the submissions made by the
parties and noting that no disagreement exists between them as to
the arrears of wages due, is satisfied that (i) the Company
accepted this liability and (ii) gave a clear commitment that the
arrears would be paid if and when the premises was sold. The
Court recommends that the Company's liability in this matter
should be accepted and that accordingly steps should be taken to
re-adjust the pre-redundancy wage rates which would also form the
basis on which the re-calculation of redundancy payments would be
made.
Division: Mr Fitzgerald Mr McHenry Mr O'Murchu
Text of Document__________________________________________________________________
CD8858 RECOMMENDATION NO. LCR11778
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: ISAAC BECKETT LIMITED (IN LIQUIDATION)
(Represented by the Federated Union of Employers)
and
IRISH DISTRIBUTIVE AND ADMINISTRATIVE TRADE UNION
SUBJECT:
1. Claim on behalf of five workers for payment of arrears of
wages.
BACKGROUND:
2. The Company was one of a group of employers in Ballina town
who were involved in joint negotiations with I.D.A.T.U. and other
Unions on the wage round and were represented by the F.U.E.
3. Because of trading difficulties the Company was unable to pay
the 2nd phase of the 24th wage round agreement due in April, 1985.
When the Company did not pay the increases under the 25th wage
round the Union lodged a claim with the Company in March, 1986.
As the Union did not receive a positive response to its claim the
matter was referred to the Conciliation Service of the Labour
Court on 10th October, 1986.
4. At the Conciliation Conference held in March, 1987, the
Company pointed out that it had a severe cash crisis. It was the
desire of the Company, however, to pay the workers what they were
due and that one of the Company's premises was being offered for
sale and when sold, the workers would be paid.
5. In mid 1987 the Company went into liquidation. The workers
concerned were paid their statutory entitlements (i.e. redundancy
lump sum payments, minimum notice, holiday pay, etc.). The Union
claimed that the workers should be paid their statutory
entitlements on the rates of pay they would have been on had they
been granted the increases under the various wage rounds, and also
claimed the arrears of wages due (estimated at #8,096).
6. The liquidator advised the Union that the arrears of wages
claimed could not be paid and that the statutory entitlements
would be calculated on existing rates of pay.
7. A further Conciliation Conference was held on 18th January,
1988. As no agreement was possible both parties agreed to a
referral to the Labour Court for investigation and recommendation.
A Court hearing was held in Galway on the 9th March, 1988.
UNION'S ARGUMENTS:
8. 1. During earlier discussions on the claim for the payment
of arrears of wages the Company gave assurances that the
workers concerned would be paid the money due to them. The
Company had a long history in the town and up to 1985 had
always honoured the wage rounds which were negotiated on a
group basis. In view of this the workers had a reasonable
expectation that they would be paid.
2. The workers have suffered a double loss. As well as not
receiving the arrears due, they have had their statutory
entitlements calculated on rates of pay of between #22 and
#32 a week less than that which should have applied.
COMPANY'S ARGUMENTS:
9. 1. The Company, in 1984, indicated to the Union that it was
not in a position to pay the town rate because of its
financial position. The trading position of the Company did
not improve which resulted in it going into liquidation. The
Company is not now in a position to pay the arrears due. To
date the liquidator has been unable to dispose of any of the
assets.
2. The liquidator, while sympathetic to the workers' claim,
has met all his obligations under the relevant legislation,
and is therefore not in a position to meet the claim.
RECOMMENDATION:
10. The Court, having considered the submissions made by the
parties and noting that no disagreement exists between them as to
the arrears of wages due, is satisfied that (i) the Company
accepted this liability and (ii) gave a clear commitment that the
arrears would be paid if and when the premises was sold. The
Court recommends that the Company's liability in this matter
should be accepted and that accordingly steps should be taken to
re-adjust the pre-redundancy wage rates which would also form the
basis on which the re-calculation of redundancy payments would be
made.
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Signed on behalf of the Labour Court
7th April, 1988 Nicholas Fitzgerald
M.D./P.W. Deputy Chairman