Labour Court Database __________________________________________________________________________________ File Number: CD90581 Case Number: LCR13059 Section / Act: S67 Parties: YOUGHAL CARPET (YARNS) LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION;CORK NO. 1 BRANCH |
Claim by the Union for compensation for the loss of 16 positions following a rationalisation programme.
Recommendation:
5. Having considered the submissions of the parties the Court
finds no merit in the Union's claim that compensation be paid to
the employees retained in the Company.
The Court accordingly does not recommend concession of the Union's
claim.
Division: Ms Owens Mr McHenry Mr Devine
Text of Document__________________________________________________________________
CD90581 RECOMMENDATION NO. LCR13059
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: YOUGHAL CARPET (YARNS) LIMITED
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
(CORK NO. 1 BRANCH)
SUBJECT:
1. Claim by the Union for compensation for the loss of 16
positions following a rationalisation programme.
BACKGROUND:
2. The Company, in February, 1990, announced that due to a number
of trading factors, such as a reduction in both prices and demand
and the strength of the punt against sterling, it urgently
required savings. The Company decided to obtain these savings
through a reduction in staff numbers and sought approximately
thirty redundancies in total throughout the Company, including 16
general operative positions. Since that announcement sufficient
numbers left the Company for various reasons (alternative
employment, transfers, redundancies etc) and there is now no
requirement for the 16 general operative redundancies. Following
local discussions the number of actual positions saved was reduced
from 16 to an effective 13 positions and the Company proposes to
transfer the general operatives to production operations. The
Union made a claim for compensation for the loss of the general
operative positions. The Company rejected the claim and as no
agreement was reached at local level the matter was referred on
11th September, 1990 to the conciliation service of the Labour
Court. A conciliation conference was held on 18th September, 1990
at which no agreement was reached and the matter was referred on
28th September, 1990 to a full hearing of the Labour Court. The
hearing took place in Cork on 10th October, 1990.
UNION'S ARGUMENTS:
3. 1. Since 1985 the Union has lost a total of sixty five
positions. No other Union or group has been so badly
affected. Despite these losses output per man increased in
order to maintain and increase productivity levels. The
Company has recognised the co-operation of the Union on
numerous occasions.
2. The Company has made tremendous savings in the past few
years with the co-operation of the Union. If the 16 positions
are lost then the workers should be compensated for the extra
work that will be required of them and should share in the
savings made by the Company.
COMPANY'S ARGUMENTS:
4. 1. The Company strategy in selecting redundancies has been
dictated by the knowledge that it is out of line with its
competitors in the area of indirect fixed costs and all
positions selected fall into this category and will result in
a permanent reduction in the fixed cost base. It is
imperative that the Company's proposals be implemented
immediately.
2. It has been agreed that the earnings including overtime of
the workers to be transferred will be protected. In addition
they will be transferred to jobs compatible, with their
experience and skills on the same shift rotas. The Company is
not in a position to pay compensation which would negate the
necessary savings which have been made in order to remain
viable.
RECOMMENDATION:
5. Having considered the submissions of the parties the Court
finds no merit in the Union's claim that compensation be paid to
the employees retained in the Company.
The Court accordingly does not recommend concession of the Union's
claim.
~
Signed on behalf of the Labour Court
Evelyn Owens
__________________________
29th October, 1990. Deputy Chairman
A.S./J.C.