Labour Court Database __________________________________________________________________________________ File Number: CD9018 Case Number: LCR12840 Section / Act: S20(1) Parties: CARLTON PRODUCTIONS LIMITED - and - SERVICES, INDUSTRIAL, PROFESSIONAL, TECHNICAL UNION |
Claim by the Union on behalf of 6 workers for increased redundancy compensation.
Recommendation:
5. The Court having considered the oral and written submissions
of the parties recommends that the level of redundancy
compensation be increased to the basic entitlement under the
Redundancy Payments Act plus #200 per year of service.
Division: MrMcGrath Mr Keogh Mr Walsh
Text of Document__________________________________________________________________
CD9018 RECOMMENDATION NO. LCR12840
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 20(1)
PARTIES: CARLTON PRODUCTIONS LIMITED
(REPRESENTED BY THE FEDERATION OF IRISH EMPLOYERS)
and
SERVICES, INDUSTRIAL, PROFESSIONAL, TECHNICAL UNION
SUBJECT:
1. Claim by the Union on behalf of 6 workers for increased
redundancy compensation.
BACKGROUND:
2. The Company is engaged in record pressing and tape
duplication. Towards the end of 1989, the workers were informed
that they would be made redundant as the Company was ceasing
production. The Company also informed the workers that they would
receive compensation amounting to their statutory entitlement plus
#100 per year of service as per a Company/Union agreement of
January, 1988. At a meeting on 4th December, 1989, the Union
claimed an additional 2 weeks pay per year of service. The claim
was rejected by the Company. On 2nd January, 1990, the Union
referred the matter to the Labour Court for investigation and
recommendation under Section 20(1) of the Industrial Relations
Act, 1969. Prior to the Court's investigation of the dispute on
1st February, 1990, the Union agreed to be bound by the Court's
recommendation.
UNION'S ARGUMENTS:
3. 1. In 1977, Conditions of Employment, inclusive of grievance
procedures and a Company/Union Agreement were signed. Since
that time the workers have honoured that agreement. The
workers concerned have given full flexibility by working in
either the record or tape divisions as requested and have
accepted short-time working and reduced working hours over a
long period of time. The Company however, has failed to
honour the Agreement by refusing to refer this dispute to
either a Rights Commissioner or the Labour Court. The
Managing Director has also failed to meet with the Union,
which is also in breach of the Agreement.
2. In January, 1988, the Company and Union agreed terms of
statutory entitlement plus #100 per year of service for
workers being made redundant. This agreement was made only in
respect of those workers who were accepting redundancy
voluntarily. It was never meant to apply in a forced
redundancy situation. It is unreasonable for the Company to
pay such a low level of compensation to these workers,
especially when one takes into account that the wage increase
due under second phase of the Programme for National
Recovery has been overdue since January, 1989.
COMPANY'S ARGUMENTS:
4. 1. Due to the recession in the record/tape market since the
early 1980's and in particular the collapse of the record
market, the Company has been winding down its operations.
Since 1988, the Company has been working a 3 day week and
staff who left were not replaced. The workers have been fully
briefed, at all stages, of the Company's position and every
opportunity has been afforded them to seek alternative
employment.
2. Given the serious circumstances in which the Company found
itself, redundancies were inevitable. As a result the Company
and Union agreed redundancy terms in January, 1988. Since
that agreement a number of workers have left the Company under
the agreed terms. These terms, despite continued heavy
losses, are still on offer to the remaining workers.
RECOMMENDATION:
5. The Court having considered the oral and written submissions
of the parties recommends that the level of redundancy
compensation be increased to the basic entitlement under the
Redundancy Payments Act plus #200 per year of service.
~
Signed on behalf of the Labour Court
Tom McGrath
________________________
14th May, 1990. Deputy Chairman
B.O'N/J.C.