Labour Court Database __________________________________________________________________________________ File Number: CD91566 Case Number: LCR13475 Section / Act: S20(1) Parties: RELIABILITY NEDERLAND B.V. - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Claim by the Union concerning terms of redundancy compensation.
Recommendation:
4. The Court notes that the Company indicated that they would not
attend the Court hearing.
Having considered the submission from the Union and taking into
account that the Company have closed their operations in Nenagh
the Court recommends that redundancy payments should be calculated
on the basis of 2 weeks' pay per year of service in addition to
what the Company have offered.
Division: Ms Owens Mr Brennan Mr Rorke
Text of Document__________________________________________________________________
CD91566 RECOMMENDATION NO. LCR13475
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 20(1), INDUSTRIAL RELATIONS ACT 1969
PARTIES: RELIABILITY NEDERLAND B.V.
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Claim by the Union concerning terms of redundancy
compensation.
BACKGROUND:
2. The Company which traded in Nenagh for 17 years has its
headquarters in Heuston, Texas. On 2nd October, 1991, the Company
informed the workers that production would cease in Nenagh on 31st
October, 1991. A meeting was held on 3rd October, 1991 between
the Union and the Company to discuss redundancy payments. The
Company offered to pay the workers statutory entitlements plus
the 60% rebate due to the Company. The Union rejected the offer.
Local level discussions and conciliation conferences under the
Labour Relations Commission failed to reach agreement on the
matter and the Union referred the dispute to the Labour Court
under Section 20(1) of the Industrial Relations Act, 1969 and
agreed to be bound by the recommendation of the Court. The
Company informed the Court by letter dated 5th November, 1991,
that they would not be represented at the hearing. The Court
hearing took place on the 15th November, 1991. The Court issued a
recommendation by letter dated 18th November, 1991.
UNION'S ARGUMENTS:
3. 1. When the Company ceased operations in Nenagh, the plant
was still a viable operation. It had orders valued at
£226,000.00 on its books. The orders were transferred
overseas.
2. The Company has made big profits during 17 years trading
in Nenagh. In 1989, profits amounting to 995,000 dollars were
sent back to U.S.A.
3. The Company paid salaried staff (Non-Union) redundancy
payments which were substantially more than the offer made to
unionised workers.
RECOMMENDATION:
4. The Court notes that the Company indicated that they would not
attend the Court hearing.
Having considered the submission from the Union and taking into
account that the Company have closed their operations in Nenagh
the Court recommends that redundancy payments should be calculated
on the basis of 2 weeks' pay per year of service in addition to
what the Company have offered.
~
Signed on behalf of the Labour Court
Evelyn Owens
___________________
4th December, 1991 Deputy Chairman.
F.B./J.C.