Labour Court Database __________________________________________________________________________________ File Number: CD91506 Case Number: AD9191 Section / Act: S13(9) Parties: SMITHKLINE BEECHAM - and - MARINE PORT AND GENERAL WORKERS UNION |
Appeal by the Union against Rights Commissioner's recommendation S.T. 313/91 concerning unfair selection for redundancy.
Recommendation:
5. The Court has given careful consideration to the detailed
submissions made by the parties and the recommendation made by the
Rights Commissioner.
In all the circumstances of the case the Court considers that the
Rights Commissioner's recommendation is reasonable and should be
accepted.
The Court accordingly upholds the Rights Commissioner's
recommendation and rejects the appeal and so decides.
Division: Ms Owens Mr Keogh Mr Rorke
Text of Document__________________________________________________________________
CD91506 APPEAL DECISION NO. AD9191
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 13(9), INDUSTRIAL RELATIONS ACT, 1969
PARTIES: SMITHKLINE BEECHAM
(REPRESENTED BY THE FEDERATION OF IRISH EMPLOYERS)
and
MARINE PORT AND GENERAL WORKERS UNION
SUBJECT:
1. Appeal by the Union against Rights Commissioner's
recommendation S.T. 313/91 concerning unfair selection for
redundancy.
BACKGROUND:
2. The worker concerned in this dispute was employed by the
Company as a sales representative in June, 1983. Following a
merger in early 1990, the salesforce were assured that their
employment was secure. In August, 1990, the Company transferred
the worker from the sales territory he had covered for 7 years.
The worker expressed his concern at the move but agreed to operate
in the new sales territory. Within 10 months of the move, the
Company informed the worker that his sales territory was no longer
viable and that they would be terminating his employment with
effect from 19th July, 1991. The Company deferred this decision
to allow for local level discussion but no agreement could be
reached and the matter was referred to a Rights Commissioner for
investigation and recommendation. The Rights Commissioner on 1st
August, 1991 recommended as follows:-
"In the circumstances of my findings at 4 above in particular,
I recommend that the claimant is afforded up to a maximum of
eight weeks' further employment from the last scheduled date
for redundancy. I cannot recommend any change in the
severance terms."
The Rights Commissioner's recommendation was rejected by the Union
who appealed it to the Labour Court. The Court heard the appeal
on 15th October, 1991.
UNION'S ARGUMENTS:
3. 1. Despite the worker's successful development of his sales
territory over a period of 7 years, the Company insisted on
transferring him into a sales territory that had serious
financial problems relative to other sales territories.
2. By imposing the change of sales territory on the worker
the Company deliberately set him up to justify the termination
of his employment.
3. The Company has refused to consider voluntary severance as
a means to settling this dispute.
COMPANY'S ARGUMENTS:
4. 1. The redundancy became necessary because of the severe
down-turn in business in 1991 and a bleak outlook for 1992.
2. The selection of the worker was based on his short service
in relation to other sales representatives, and their
established relationships with customers.
3. The Company recognises the trauma associated with
redundancy and, therefore, provided significant redundancy
compensation and a counselling advisory service.
4. The Rights Commissioner confirmed that the terms offered
were "top of the range".
DECISION:
5. The Court has given careful consideration to the detailed
submissions made by the parties and the recommendation made by the
Rights Commissioner.
In all the circumstances of the case the Court considers that the
Rights Commissioner's recommendation is reasonable and should be
accepted.
The Court accordingly upholds the Rights Commissioner's
recommendation and rejects the appeal and so decides.
~
Signed on behalf of the Labour Court
Evelyn Owens
__________________________
28th October, 1991. Deputy Chairman
F.B./J.C.