Labour Court Database __________________________________________________________________________________ File Number: CD89318 Case Number: AD8955 Section / Act: S13(9) Parties: JOHN RONAN AND SONS LIMITED - and - AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION |
Appeal by the Union against Rights Commissioner's recommendation No. ST 33/89 concerning compensation for loss of earnings to 4 workers.
Recommendation:
5. Having regard to the circumstances of the case, the Court
recommends that the Rights Commissioner's recommendation of
payment of #125 compensation be increased to #200.
The Court so decides.
Division: Ms Owens Mr Shiel Mr Walsh
Text of Document__________________________________________________________________
CD89318 APPEAL DECISION NO AD5589
INDUSTRIAL RELATIONS ACT, 1969
SECTION 13(9)
PARTIES: JOHN RONAN AND SONS LIMITED
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
AND
AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Appeal by the Union against Rights Commissioner's
recommendation No. ST 33/89 concerning compensation for loss of
earnings to 4 workers.
BACKGROUND:
2. The 4 workers operated a two-shift system and were employed on
'toggling' which involves the stretching of raw skins onto a frame
for drying. They had worked the two-shift system for 2,4,5 and 7
years respectively. On 14th March, 1987, the Company discontinued
the shift due, to poor trading conditions. The Union claimed that
the withdrawal of the shift, which was discontinued without notice
or consultation, had caused grave hardship to the 4 workers and
they should be compensated. The Company rejected the claim on the
basis that the shift was discontinued due to a loss of business
and as such was outside the Company's control. The matter was
referred to a Rights Commissioner who issued the following
recommendation on 13th February, 1989:-
" RECOMMENDATION
I am satisfied that losses occurred in varying degrees
to the claimants, between 1986 and 1987 when the wage
round increase is discounted.
In the circumstances I recommend that each claimant
received #125 compensation without prejudice. The two
claimants with shorter service have lost more, this is
offset by the much longer service of the two other
claimants.
In the event of shift working being terminated in
future no claim should be entertained unless two years
has been worked on shift at least."
The Union rejected the Rights Commissioner's recommendation and on
3rd May, 1989, appealed it to the Labour Court under Section 13(9)
of the Industrial Relations Act, 1969. The Court heard the appeal
on 12th July, 1989, in Clonmel.
UNION'S ARGUMENTS:
3. 1. The Company's decision to withdraw the shift without
consultation caused grave hardship to the 4 workers as they
had geared their standard of living to their income, including
shift pay. They had entered into heavy financial commitments
and much distress was caused by the Company's decision to
discontinue shift working.
2. The Rights Commissioner was provided with details of the 4
workers' gross earnings between February - October, 1986 and
1987. (These details were also provided to the Court). Two
of the workers showed a loss of earnings while the 2 others
showed a gain. These, however, must be off-set by a 6%
increase in basic pay achieved in 1987.
3. In view of the fact that the workers had to work longer
and more unsocial hours in overtime to make up the loss, the
Union contends that the Rights Commissioner did not adequately
compensate the workers. The Union requests that his award
should be increased.
COMPANY'S ARGUMENTS:
4. 1. The Company rejected the Union's claim for compensation on
the basis that the discontinuation of the shift resulted from
a serious downturn in the level of orders. The decision was
forced on the Company. It is not normal practice to in these
circumstances to provide compensation. Despite this fact the
Company is prepared to accept the Rights Commissioner's
recommendation.
2. The earnings of the workers concerned have in fact
increased since the shift was discontinued, although the
Company does accept that 2 of the workers did suffer a drop in
earnings initially. This fact does not provide the basis for
any deviation from the Rights Commissioner's recommendation.
DECISION:
5. Having regard to the circumstances of the case, the Court
recommends that the Rights Commissioner's recommendation of
payment of #125 compensation be increased to #200.
The Court so decides.
~
Signed on behalf of the Labour Court,
Evelyn Owens
___11th___August,___1989. ___________________
B. O'N. / M. F. Deputy Chairman