Labour Court Database __________________________________________________________________________________ File Number: CD89544 Case Number: LCR12556 Section / Act: S67 Parties: KILKENNY TEXTILE MILLS - and - IRISH TRANSPORT AND GENERAL WORKERS UNION |
Claim for loss of earnings arising from lay-off.
Recommendation:
The Court having considered the submissions from both parties
finds no basis on which it could recommend concession of the
Union's claim which it accordingly rejects.
Division: Ms Owens Mr Brennan Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD89544 RECOMMENDATION NO. LCR12556
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: KILKENNY TEXTILE MILLS
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
AND
IRISH TRANSPORT AND GENERAL WORKERS UNION
SUBJECT:1. Claim for compensation for loss of earnings arising
from lay-off.
BACKGROUND:
2. The Company manufactures spun yarn which is used in the
production of terry towels. The industry is seasonal and fill
up orders are used to supplement normal production , at reduced
margins. In August, 1987 the workers were laid-off for nine
days; in July/August, 1988 another temporary lay-off of five
weeks occurred and the workers were laid off for ten days from
26th February, 1989 to 10th March, 1989. The Union is claiming
that,due to the frequency of the lay-offs and the financial
losses involved, the workers should be paid compensation of #120
each (#190 gross) for the ten day period. A further period of
lay-off occurred in May, 1989. No agreement could be reached on
the issue at local level and the matter was referred to the
Labour Court. A conciliation conference was held on 11th July,
1989 at which no progress was made and on 8th August,1989 the
matter was referred to the Labour Court for investigation and
recommendation. The Court investigated the dispute on 18th
August, 1989.
UNION'S ARGUMENTS:
3.1. At the time of the third lay-off inFebruary, 1989
the workers began to find it hard to absorb the financial losses
which at that stage involved a loss of forty-eight working days.
Each of the lay-off periods had been sufficiently distanced from
the previous one to cause the loss of the first three days social
welfare benefit. As the workers are in the textile sector their
average earnings are at the lower end of the industrial earnings
scale. Therefore,their ability to save to cover periods of
lay-off is limited.
3.2. Although the Company has the right to declare temporary
lay-off periods there is an overall obligation on the employer to
provide constant employment. When employment is interrupted on a
regular basis then some kind of compensation should be paid.
While compensation for loss of earnings due to lay-off could not
accurately be described as a norm, it is not unusual for such
payments to be made (details supplied to the Court). In the
circumstances, the workers should be compensated for the third
lay-off period and receive a net lump sum of #120 each.
COMPANY'S ARGUMENTS:
4.1. There is a period in Spring and Summer months when there can
be a reduced production requirement and on occasions in the past
this has unfortunately led to a lay-off situation. While efforts
to gain sales to fill the slack period will continue, some
lay-off/short-time working may be unavoidable. Lay-offs and
short-time working have not been extensive in the Company
(details supplied to the Court). 4.2Other companies in the industry are simi
all other plants within the parent group and it is not the
Company's policy to pay compensation. There are a number of
previous Labour Court recommendations which have rejected similar
claims (details supplied to the Court). It is not normal for
compensation to be paid and it should not be paidin this case.
RECOMMENDATION:
5. The Court having considered the submissions from both parties
finds no basis on which it could recommend concession of the
Union's claim which it accordingly rejects.
~
Signed on behalf of the Labour Court,
Evelyn Owens
__20th__September,__1989. ___________________
U. M. / M. F. Deputy Chairman