Labour Court Database __________________________________________________________________________________ File Number: CD91375 Case Number: LCR13389 Section / Act: S26(1) Parties: WALTONS MUSICAL INSTRUMENT GALERIES LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Claim by the Union for enhanced redundancy terms.
Recommendation:
5. Having considered the submissions from the parties the Court
recommends that the Company pay the claimants redundancy pay in
the sum of 3 weeks' pay per year of service in addition to
statutory entitlements.
Division: Ms Owens Mr McHenry Mr Devine
Text of Document__________________________________________________________________
CD91375 RECOMMENDATION NO. LCR13389
THE LABOUR COURT
INDUSTRIAL RELATIONS ACTS 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT 1990
PARTIES: WALTONS MUSICAL INSTRUMENT GALERIES LIMITED
(Represented by the Federation of Irish Employers)
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Claim by the Union for enhanced redundancy terms.
BACKGROUND:
2. In May, 1991, the Company advised the Union of a decision to
close the branch at Dun Laoghaire on the grounds that it was
trading at a continuous loss. The four workers at the branch,
whose service ranges from under two years to over eight years,
were offered redundancy terms amounting to statutory entitlements
plus one week's pay per year of service. The Union rejected the
offer and is claiming eight weeks' pay per year of service. The
Company has rejected the Union's claim. The issue was referred to
the conciliation service of the Labour Relations Commission on the
18th February, 1991. A conciliation conference was held on the
10th June, 1991 but no agreement was reached. The dispute was
referred to the Labour Court by the Labour Relations Commission
on the 19th July, 1991. A Court hearing was held on the 15th
August, 1991.
UNION'S ARGUMENTS:
3. 1. The Company's offer is unacceptable to the Union in view
of the relatively short service and low pay of the workers
concerned (Details supplied to the Court). The Union's claim
of eight weeks' pay per year of service is more appropriate
compensation in the circumstances.
2. The Company's North Frederick Street shop took on staff
in December, 1990 and due consideration should be given to
the "last in first out" formula.
3. It is not just the downturn in trade which is
responsible for the closure but also the attitude and style
of Management, which is somewhat out of touch with the needs
of the musical public.
4. The Union's claim, if conceded, would result in payments
which by today's standards are modest. Anything less will
place the workers concerned in a severely disadvantaged
position when they lose their livelihoods.
COMPANY'S ARGUMENTS:
4. 1. The Company's offer has been made in good faith in an
effort to go some way towards meeting expectations of the
workers concerned. In making this offer, however, Management
has had to take into consideration the severe financial
constraints within which it operates. The Company is clearly
unable to pay any more because of the financial difficulties.
2. The Company has been making a loss for the past six
years. (Details of the Company's financial difficulties
supplied to the Court). Since the mid-1980s, the Walton
family has invested a considerable amount of capital into the
business in an effort to keep it going. This investment has
rendered a nil return for the investors. The Company is
currently operating in a sector where competition is
increasing and the market appears to be diminishing. Music
is a luxury market and has been hit very badly in recent
months by recession. In addition, four new stores in this
sector have opened in the Dublin City area over the past
couple of years. All these factors culminated in 1991 in a
sales decline of 15%. The reason for the closure and
redundancies is that this shop has been returning losses over
the past eight years. The Company is unable to sustain
further losses.
4. The decision to close this shop has not been taken
lightly by Management and considerable research has been
conducted into the situation. If there were any possibility
of continuing trading at this branch, the Company would do
so. There is no commercial benefit to Waltons in closing
this shop.
RECOMMENDATION:
5. Having considered the submissions from the parties the Court
recommends that the Company pay the claimants redundancy pay in
the sum of 3 weeks' pay per year of service in addition to
statutory entitlements.
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Signed on behalf of the Labour Court
29th August, 1991 Evelyn Owens
T.O'D / M.O'C. _______________
Deputy Chairman