Labour Court Database __________________________________________________________________________________ File Number: CD88757 Case Number: LCR12097 Section / Act: S67 Parties: NATIONAL CATERING ORGANISATION - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
Redundancy compensation in the case of two workers.
Recommendation:
5. Having regard to the established precedents with other
contractors involved with this Company, the Court recommends that
the claimants in this particular case be paid redundancy
compensation of five weeks' pay per year of service in addition to
their statutory entitlements.
Division: Mr Fitzgerald Mr Shiel Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD88757 RECOMMENDATION NO. LCR12097
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: NATIONAL CATERING ORGANISATION
AND
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Redundancy compensation in the case of two workers.
BACKGROUND:
2. National Catering Organisation provides a contract catering
service at the premises of Baxter Health Care S.A. formerly
Travenol, Swinford, Co. Mayo. Due to restructuring of work
practices there has been a fall in demand for meals and two
employees are being made redundant as a result. The Union sought
compensation for these workers of five weeks' pay per year of
service plus statutory entitlements. This is based on the
redundancy terms previously paid by Travenol. Another catering
contractor, Gardner Merchant, previously provided a catering
service for Travenol and implemented the Travenol package in the
case of its staff, recouping the cost from Travenol. The Union
contends that this arrangement should continue. The Company,
however was not prepared to concede this level of redundancy
compensation. The Union served strike notice on the Company but
this was suspended pending the outcome of a Labour Court
Conciliation Conference held on 30th September, 1988. At this
conference the Industrial Relations Officer of the Court put
forward the following settlement proposal:-
" Redundancy compensation of 5 weeks pay per year of
service in addition to statutory entitlements to be
paid to each of the 2 employees concerned.
This proposal has been made taking account of the
well established precedent in this location and also
the relatively minor cost of implementing the
proposal in this case.
It should be noted that the Union's claim was
formulated on the basis of the established precedent
only and, accordingly, concession of the claim would
have no wider implications. "
The proposal was accepted by the Union and rejected by the
Company. The matter was then referred to a full Court hearing.
The hearing took place on 19th October, 1988, in Galway.
UNION'S ARGUMENTS:
3. 1. The Union's claim is based on implementation of the
existing agreement. In 1979/80 Travenol closed its Belmullet
plant, and a redundancy package of five weeks pay per year of
service plus statutory entitlements was agreed. The catering
contractor (Cara-Cater) implemented this settlement for its
staff. In 1986, Travenol closed the Castlebar plant. Again
the agreement was implemented, both by Travenol and by the
then catering contractor (Gardner Merchant). The Union is not
prepared to accept a situation where the current catering
contractor pays redundancy compensation of less than five
weeks pay per year of service plus statutory entitlements.
2. The Union could have refused to accept these redundancies.
However, it did so, on condition that the existing agreement
is implemented.
COMPANY'S ARGUMENTS:
4. 1. The staff concerned are employed directly by National
Catering Organisation. Their terms and conditions are as set
out in the national agreement between the Union and National
Catering Organisation. The agreement does not provide for
redundancy.
2. Redundancies in the Company are the subject of local
discussions and are viewed on their individual merits.
Settlements have varied from statutory entitlement only to
three weeks pay per year of service. The Company contends
that this is the only precedent which may be valid. No
employee in the western region has previously been made
redundant.
3. The Union's claim is well above settlements generally in
the catering industry and in the western region. Concession
of the claim could create a precedent.
RECOMMENDATION:
5. Having regard to the established precedents with other
contractors involved with this Company, the Court recommends that
the claimants in this particular case be paid redundancy
compensation of five weeks' pay per year of service in addition to
their statutory entitlements.
~
Signed on behalf of the Labour Court,
Nicholas Fitzgerald
_______________________
28th October, 1988.
A. K. / M. F. Deputy Chairman