Labour Court Database __________________________________________________________________________________ File Number: CD88219 Case Number: LCR11878 Section / Act: S20(1) Parties: FRANK MCDONAGH & COMPANY LIMITED - and - IRISH DISTRIBUTIVE AND ADMINISTRATIVE TRADE UNION |
Claim on behalf of two workers for payment of a redundancy lump sum of four weeks wages per year of service plus statutory redundancy lump sum entitlement.
Recommendation:
5. The Court in the circumstances of this case recommends that
the claimants be paid redundancy at a rate of 3 weeks wages
per year of service in addition to their statutory entitlement.
Division: Ms Owens Mr Heffernan Mr O'Murchu
Text of Document__________________________________________________________________
CD88219 RECOMMENDATION NO. LCR11878
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 20(1)
PARTIES: FRANK MCDONAGH & COMPANY LIMITED
and
IRISH DISTRIBUTIVE AND ADMINISTRATIVE TRADE UNION
SUBJECT:
1. Claim on behalf of two workers for payment of a redundancy
lump sum of four weeks wages per year of service plus statutory
redundancy lump sum entitlement.
BACKGROUND:
2. In March, 1988, two senior sales assistants in the ladies
department were given notice of redundancy by the Company. They
have 14 and 17 years service respectively. The Union lodged a
claim for redundancy compensation as outlined at 1 above. The
Company rejected the claim and paid the workers their statutory
redundancy lump sums.
3. The Union referred the matter to the Conciliation Service of
the Labour Court. The Company declined an invitation to attend a
Conciliation Conference. The Union then referred the matter to
the Labour Court for investigation and recommendation under
Section 20(1) of the Industrial Relations Act, 1969. A Court
hearing was held in Galway on 4th May, 1988. By letter dated 26th
April, 1988 the Company indicated that it would not be represented
at the hearing, that the workers had been paid their statutory
redundancy entitlement and that the Company was not in a position
to make any additional payments.
UNION'S ARGUMENTS:
4. 1. The workers concerned have given long and loyal service
to the Company. They have been treated very unfairly in that
they were not advised properly about the future of their
department. In fact in August, 1987, they were assured by
Management that there was no danger that their department
would be closed down. The week before the notice of
redundancy was issued the Union was advised that this
department was not being closed down.
2. The claim of four weeks pay per year of service plus
statutory redundancy was negotiable and the two staff members
were prepared to settle for the terms of a recent Labour
Court recommendation No. LCR 11639 in respect of another
Company in Galway which provided for 3 times the statutory
redundancy lump sum plus the rebate paid to the company.
RECOMMENDATION:
5. The Court in the circumstances of this case recommends that
the claimants be paid redundancy at a rate of 3 weeks wages
per year of service in addition to their statutory entitlement.
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Signed on behalf of the Labour Court
31st May, 1988 Evelyn Owens
M.D./P.W. Deputy Chairman