Labour Court Database __________________________________________________________________________________ File Number: CD89405 Case Number: LCR12473 Section / Act: S67 Parties: BEWLEYS CAFES AND SHOPS LIMITED - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION |
Claim for enhanced redundancy compensation for sales assistants.
Recommendation:
5. Having considered the submissions made by the parties the
Court has come to the conclusion that while certain of the long
service staff may have been upset by the prospect of change in the
operation of the firm which may have contributed to their decision
to leave, the Court is satisfied that no element of coercion was
used by the employer. Essentially the workers volunteered for
redundancy and in the circumstances the Court does not recommend
any increase in the payments made.
Division: Mr O'Connell Mr Shiel Mr Walsh
Text of Document__________________________________________________________________
CD89405 RECOMMENDATION NO. LCR12473
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: BEWLEYS CAFES AND SHOPS LIMITED
AND
IRISH TRANSPORT AND GENERAL WORKERS' UNION
SUBJECT:
1. Claim for enhanced redundancy compensation for sales
assistants.
BACKGROUND:
2. In 1986, the Company was experiencing financial difficulties
and was taken over by Campbell Catering. At that time there were
seven shops, five cafes, a bakery, a chocolate factory and a
wholesale tea and coffee Company. The cafes and shops continued
to incur losses and a decision was taken to offer five of the
seven shops as franchises. The two city centre shops were
retained. All permanent staff were advised that if their
operation was to be franchised and they were not successful in
securing a position with the franchisee, then they would be
guaranteed work in one of the two city centre shops. Management
met with each sales assistant separately and advised each one of
the position. Of the existing twenty three sales assistant jobs,
twelve were to remain. This meant that some sales assistant staff
might be required to undertake other duties. Of the twelve sales
assistants who are members of the Union, ten volunteered to be
made redundant. They were paid their statutory redundancy
entitlements. Their salary was approximately #6,000 per annum.
The staff who left received a pension or lump-sum in accordance
with the pension scheme which was established in 1986. This
provided for a pension of two thirds of salary (inclusive of State
pension) for staff attaining age 65. The staff who left were all
aged less than 65 and their pensions were reduced for each year
between their age and age 65 and also reduced by the amount of the
State pension, which none will qualify for until age 66. The
Union, on behalf of the workers sought enhanced redundancy
compensation and pension entitlements. The matter was referred to
the conciliation service of the Labour Court along with the
question of the Programme for National Recovery. No agreement
being reached, the matter was referred to a full hearing of the
Labour Court. The hearing took place on 29th June, 1989.
UNION'S ARGUMENTS:
3. 1. The staff experienced a great change in their working
environment when Campbell Catering took over Bewleys' Cafes.
Personal service was replaced by a "cash and wrap" situation.
Many staff felt that their working environment disimproved.
2. When the decision was taken to franchise five of the seven
shops all of the sales assistants were in effect interviewed
for their own jobs. They were informed that for twenty three
assistants, twelve jobs were available and that it might be
necessary for some sales assistants to perform other work such
as cleaning tables. The workers concerned are mainly mature
people who have worked in the same job for a considerable
period of time.
3. Given the circumstances, the Union considers that the
workers did not volunteer for redundancy in the normal way but
that a great deal of pressure existed which caused them to
take this option.
4. Previous redundancy settlements since Campbell Catering
took over have been two weeks' pay per year of service plus
statutory entitlements. The Union contends that this formula
should apply to the sales assistants who have left.
5. The claimants did not receive adequate pension payments.
Details relating to five of the claimants are as follows:-
Years of Service Age
A 20 62 - Pension #871 p.a. or lump sum #7345
B 19 61 - Pension #938 p.a. or lump sum #8213
C 19 61 - Pension #285 p.a. or lump sum #2390
D 24 57 - Pension #426 p.a. or lump sum #3358
E 21 64 - Pension #1623 p.a. or lump sum Nil.
and # 426 p.a. or lump sum #10,353
The Union contends that the staff close to retirement should
be given their pension entitlement with no "clawback" for the
remaining years to age 65, and no offsetting from the State
Old Age Pension until age 66.
COMPANY'S ARGUMENTS:
4. 1. The Company did not approach any member of staff about
redundancy. The workers themselves volunteered for redundancy
for a variety of personal reasons. Due to the fact that the
Company was in the process of reducing its overall work force
to facilitate the absorption of staff from the suburban units
it was possible to make some people redundant. The Company
could have adopted the view of letting those with shorter
service go. In that situation there would have been no
redundancy payments.
4. 2. Had the workers concerned sought payments in addition to
their statutory entitlements their applications for redundancy
would not have been accepted. At this stage all the people
have been made redundant on the terms as agreed and it would
be quite incorrect for anyone to now attempt to impose
additional payments in addition to those payments already
being received.
3. All these staff quite clearly stated that they were not
associating their request with the claim which was being
pursued by the Union even though they knew that the Union was
intent upon making a claim.
4. The ITGWU No. 2 Branch represents a small number of people
who have left the Company. Most of the staff are represented
by other unions who have not pursued a claim of this nature.
5. The Company has over recent years made a substantial
investment in the Bewleys Group as a whole, and has
implemented pay agreements regardless of the fact that these
investments are not returning as predicted. The steps which
were taken by the Company, whilst necessary, were not harshly
implemented.
RECOMMENDATION:
5. Having considered the submissions made by the parties the
Court has come to the conclusion that while certain of the long
service staff may have been upset by the prospect of change in the
operation of the firm which may have contributed to their decision
to leave, the Court is satisfied that no element of coercion was
used by the employer. Essentially the workers volunteered for
redundancy and in the circumstances the Court does not recommend
any increase in the payments made.
~
Signed on behalf of the Labour Court,
John O'Connell
___21st___July,___1989. ___________________
A. K. / M. F. Deputy Chairman