Labour Court Database __________________________________________________________________________________ File Number: CD90705 Case Number: AD911 Section / Act: S13(9) Parties: TRIBUNE PUBLICATIONS P.L.C. - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Appeal by both parties against Rights Commissioner's Recommendation No. B.C. 309/90 concerning redundancy severance payments for four workers.
Recommendation:
5. Having considered the submissions of the parties, the Court
does not find grounds to alter the Rights Commissioner's
Recommendation.
The Court so decides.
Division: CHAIRMAN Mr Brennan Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD90705 APPEAL DECISION NO. AD191
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 13(9)
PARTIES: TRIBUNE PUBLICATIONS P.L.C.
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Appeal by both parties against Rights Commissioner's
Recommendation No. B.C. 309/90 concerning redundancy severance
payments for four workers.
BACKGROUND:
2. In 1987 the Company bought two home-distributed newspapers
i.e. "Southside" and "Southside Express." Due to losses incurred
on both publications the Company, on 16th October, 1990, decided
to cease publication of the Southside Express and gave one months
notice to the workers concerned. Of the four workers concerned in
this appeal, three have less than a year's service and one has one
year's service. They do not therefore have entitlement to
statutory redundancy payments. The Company offered a severance
payment of two weeks wages to workers with more than one year's
service. This offer was rejected by the Union and as no agreement
could be reached the matter was referred for investigation by a
Rights Commissioner. The Rights Commissioner held an
investigation into the dispute on 12th November, 1990 at which the
Company offered a lump sum severance payment of #1,500 to be
divided among the four workers concerned and two other workers.
The Rights Commissioner issued the following recommendation on
27th November, 1990:-
"In the light of the above I recommend as follows:
Taking all factors into account I recommend that the
following severance payments be made - Worker A #1200,
Worker B #500, Worker C #500 and Worker D #500."
(The workers were named in the Rights Commissioner's
Recommendation).
Both parties subsequently appealed the Recommendation to the
Labour Court under Section 13(9) of the Industrial Relations Act,
1969. The Court heard the appeal on 7th January, 1991.
UNION'S ARGUMENTS:
3. 1. The workers concerned feel justifiably aggrieved at being
made redundant. All have relatively short service and this
reflects the fact that most had left other secure employment
to work for the Company. The workers should receive fair and
reasonable compensation for the loss of their jobs.
2. The existing Tribune Group's voluntary redundancy scheme
provides for payment of #950 per year of service or a total of
#5,000 in respect of any worker, whichever is the greater.
This has been offered to other staff within the context of new
technology. The workers concerned therefore expect
compensation of that order for the loss of their jobs.
3. Within the context of the newspaper industry the level of
compensation recommended by the Rights Commissioner is
substantially below the minimum for severance payment terms
previously agreed for national newspapers.
4. The Company is more than capable of affording the level of
payments recommended by the Rights Commissioner. While the
Rights Commissioner's Recommendation falls short of the
workers reasonable expectations the amounts awarded are the
minimum that they can be expected to accept.
COMPANY'S ARGUMENTS:
4. 1. The Company is appealing the Rights Commissioner's
Recommendation on the grounds that the amounts awarded are
excessive having regard to the length of service involved for
the workers concerned and the financial position of the
Company. In addition payment of these amounts would establish
a precedent which the Company cannot afford.
2. In 1990 the Southside and Southside Express accrued
financial losses which could not be sustained. It was hoped
that by closing Southside Express the Company would be able to
rescue the Southside. This has not proved possible and on 7th
December, 1990 the Company gave one month's notice to the
workers in Southside. The decision of the Court on this
appeal will have repercussive effects for the Company in
dealing with Southside redundancy terms.
3. The estimated cost of applying the terms recommended by
the Rights Commissioner for the two newspapers is #23,000.
Added to the losses already incurred this sum would be an
extremely difficult burden to carry.
4. The Company has accepted and met its legal obligations to
pay notice, holiday pay and statutory redundancy where
appropriate. The Company's offer of an ex-gratia service
payment of two weeks salary per year of service to those staff
with more than one years service was rejected by the Union.
The Company is now prepared to increase its offer to three
weeks salary per year of service and pro-rata for parts of
years with a minimum payment of one weeks salary. This offer
is reasonable in the circumstances and the Rights
Commissioner's Recommendation should be varied accordingly.
DECISION:
5. Having considered the submissions of the parties, the Court
does not find grounds to alter the Rights Commissioner's
Recommendation.
The Court so decides.
~
Signed on behalf of the Labour Court
Kevin Heffernan
__________________________
10th January, 1991. Chairman
A.S./J.C.