Labour Court Database __________________________________________________________________________________ File Number: CD88319 Case Number: LCR11908 Section / Act: S20(1) Parties: VICTOR HOTEL - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
The redundancy settlement terms of one porter.
Recommendation:
5. The Court, having considered the submissions from both
parties, recommends payment of an ex-gratia sum of £3,000 less the
amount already paid (£868.40) in full settlement of the claim.
Division: Ms Owens Mr Shiel Mr Walsh
Text of Document__________________________________________________________________
CD88319 RECOMMENDATION NO. LCR11908
INDUSTRIAL RELATIONS ACT, 1969
SECTION 20(1)
PARTIES: VICTOR HOTEL
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
AND
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. The redundancy settlement terms of one porter.
BACKGROUND:
2. The worker concerned commenced employment as a night porter in
the Hotel on 28th June, 1978. In 1986 he was transferred to the
position of house porter (a position which had not existed
previously). The job involved carrying and distributing linen,
vacuum cleaning and taking refuse sacks to the dump. A number of
redundancies were effected in the Hotel in 1987. This worker
received notice of redundancy on 17th September. His employment
terminated on 15th October, 1987. His basic rate of pay at the
time of redundancy was £86.24 per week. He received redundancy
compensation consisting of his statutory entitlement plus four
weeks' pay in lieu of notice. This amounted to £868.40. The
Union wrote to the hotel manager on 4th November, 1987, seeking to
discuss the matter and seeking an ex-gratia severance payment of
four weeks' pay per year of service. No local level meeting took
place, however. The Union referred the matter to the conciliation
service of the Labour Court on 20th January, 1988. Management
were not agreeable to attending a conciliation conference and the
matter was referred, on 20th April, 1988 to a full hearing of the
Labour Court under Section 20(1) of the Industrial Relations Act.
The hearing took place on 26th May, 1988. Prior to the hearing
the Union agreed to be bound by the Court's recommendation.
UNION'S ARGUMENTS:
3. 1. This worker has given nine years of loyal service to the
Hotel. His rate of pay, at £2.15 per hour, was low. Yet he
has received only his statutory redundancy entitlements. The
Union considers this to be unfair and is seeking, on his
behalf, four weeks' pay per year of service. It is estimated
that the cost of conceding the claim would not exceed
£3,104.64.
3. 2. The worker's redundancy occurred without reference to his
Union and it was only after the termination of his employment
that the situation came to the Union's attention.
3. The worker has been treated less favourably than other
employees who were made redundant by the Hotel management
during the same period. Two other employees, members of
another Union, who had 19 months and two years' service
respectively, received redundancy settlements of £1,285.56 and
£1,482.24.
MANAGEMENT'S ARGUMENTS:
4. 1. The worker was transferred from the position of night
porter to that of house porter because management believed he
was experiencing difficulties in the former position. This
transfer took place as an alternative to dismissal. The
position of house porter had not previously existed.
2. In 1987, due to a fall-off in business, management found
it necessary to implement a number of redundancies. One of
the positions it was felt necessary to dispense with was that
of house porter. A chef, a head housekeeper and a
chambermaid, members of the ITGWU, were also made redundant
and did not receive any ex-gratia payments.
3. This worker's redundancy was discussed with him and he
accepted the terms given. It was one and a half months later
when management was made aware that the worker was disputing
the terms of the redundancy. Management consider it unfair
that retrospective renegotiation of these terms should be
sought.
RECOMMENDATION:
5. The Court, having considered the submissions from both
parties, recommends payment of an ex-gratia sum of £3,000 less the
amount already paid (£868.40) in full settlement of the claim.
~
Signed on behalf of the Labour Court.
Evelyn Owens
___________________
20th June, 1988
A.K./M.F. Deputy Chairman