Labour Court Database __________________________________________________________________________________ File Number: CD90590 Case Number: LCR13064 Section / Act: S20(1) Parties: BABYGRO LIMITED - and - SALES MARKETING AND ADMINISTRATIVE UNION OF IRELAND |
Claim by the Union on behalf of a salesman for enhanced redundancy compensation.
Recommendation:
5. Having considered the submissions of the parties and having
noted the length of service of the claimant, the absence of any
company pension, the rationalisation of the business and its
likely outcome, the Court recommends in the particular
circumstances of this case that the Company pay the claimant 2.50
weeks pay per year of service in addition to his statutory
entitlements.
Division: CHAIRMAN Mr Keogh Mr Devine
Text of Document__________________________________________________________________
CD90590 RECOMMENDATION NO. LCR13064
INDUSTRIAL RELATIONS ACT, 1946 TO 1976
SECTION 20(1)
PARTIES: BABYGRO LIMITED
(Represented by the Federation of Irish Employers)
and
SALES MARKETING AND ADMINISTRATIVE UNION OF IRELAND
SUBJECT:
1. Claim by the Union on behalf of a salesman for enhanced
redundancy compensation.
BACKGROUND:
2. The Company is a subsidiary of R.H. Lowe p.l.c. a United
Kingdom public company. The salesman concerned has 40 years
service, having originally started with Glenn Abbey, whose
business was taken over by the Company. He is the only salesman
employed by the Company and has been engaged in selling to various
outlets including wholesalers, groups and stores. The Company has
been making considerable losses and as a result redundancies have
taken place at all R.H. Lowe production units, including this
Company. Various other cost cutting measures were also undertaken
including the reduction of the customer base to leave only major
customers such as Marks and Spencer, B.H.S. and Mothercare. As a
result of this the Company informed the salesman in July, 1990,
that his position would be made redundant. The Company offered
the salesman statutory entitlements and one weeks pay ex-gratia.
At a meeting between the parties on 6th September, 1990, the offer
of an ex-gratia payment was increased to two weeks pay. The
Company also offered to sell the salesman his car for #1,500. The
Union rejected the Company's offer and claimed #30,000 plus
statutory entitlements for the salesman. As agreement could not
be reached locally, the matter was referred to the conciliation
service of the Labour Court on 4th October, 1990. No agreement
could be reached at a conciliation conference held 9th October,
1990, and the matter was referred by the Union to the Labour Court
for investigation and recommendation under Section 20(1) of the
Industrial Relations Act, 1969. The Union agreed to be bound by
the Court's recommendation. Prior to the Court's investigation on
12th October, 1990, the Company indicated that it would not be in
attendance, however a statement of its position was forwarded to
the Court.
UNION'S ARGUMENTS:
3. 1. The salesman concerned has given 40 years loyal and
dedicated service to the Company. He has no pension and is
unlikely to secure alternative employment. He has heavy
personal financial commitments. The Company's offer is
unacceptable. The salesman should not be treated so badly.
3. 2. The salesman's reputation for reliability has suffered
as a result of the Company's lack of ability to meet
customer's orders, particularly over the last year. He was
also kept in the dark about the Company's plans. Even as late
as July, 1990, he was being asked for forecasts on sales.
3. The Company's Chief Executive and Financial Director are
relatively new appointments and the Union does not believe
that they appreciate the salesman's expectations. The Union
has pointed out that the average redundancy settlement in
Ireland would be of the order of #50,000 plus statutory and
the car would be sought at a nominal price. The Union is
claiming #30,000 (i.e. 2.47 weeks pay per year of service)
plus statutory. The Company has said that while they had
substantial losses in the past, they are now at a realistic
level and the Company intends to continue trading. The
relatively small amount being claimed will hardly impact on
such a major employer.
COMPANY'S ARGUMENTS:
4. 1. The Company advised the salesman in July, 1990, that his
position would be made redundant. There were and are no
alternative suitable positions available for him.
2. Staff made redundant from United Kingdom sites received
no ex-gratia payments. Staff made redundant from Dublin sites
received one weeks pay ex-gratia. The salesman is being
offered two weeks pay ex-gratia. The Company, in view of the
substantial losses being made, is not in a position to make
any additional payments.
RECOMMENDATION:
5. Having considered the submissions of the parties and having
noted the length of service of the claimant, the absence of any
company pension, the rationalisation of the business and its
likely outcome, the Court recommends in the particular
circumstances of this case that the Company pay the claimant 2.50
weeks pay per year of service in addition to his statutory
entitlements.
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Signed on behalf of the Labour Court
Kevin Heffernan
25th October, 1990 ----------------
B O'N/U.S. Chairman