Labour Court Database __________________________________________________________________________________ File Number: CD92544 Case Number: LCR13827 Section / Act: S26(1) Parties: HANGAR INDUSTRIAL DOORS LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
A dispute concerning severance pay.
Recommendation:
Having considered the submissions of the parties and taken account
of the trading and financial position of the business, the Court
recommends that the Company pay each of the six redundant workers
a sum of #1,000 inclusive of all statutory entitlements, where
applicable, in settlement of the Union's claim.
The Court so recommends.
Division: Mr Heffernan Mr Keogh Mr Walsh
Text of Document__________________________________________________________________
CD92544 RECOMMENDATION NO. LCR13827
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1) INDUSTRIAL RELATIONS ACT, 1990
PARTIES: HANGAR INDUSTRIAL DOORS LIMITED
(REPRESENTED BY THE FEDERATION OF IRISH EMPLOYERS)
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. A dispute concerning severance pay.
BACKGROUND:
2. 1. The Company was established in April, 1979 and is
involved in the manufacture of industrial doors and loading
bay equipment. The former is the core product of the
business.
2. In 1989, the Company introduced dock levellers and
ancillary products to the product range, with a view to
entering the U.K. market. Turnover increased in 1990 and
1991 as a direct result of this decision and the workforce
was increased accordingly.
3. The downturn in construction activity in the latter part
of 1991 led to a deterioration in the Company's situation in
early 1992, with a downturn in sales. As a consequence, the
Company laid 3 workers off in December, 1991 and a further 3
workers in April, 1992.
4. The six workers sought redundancy when it became clear
that they would not be recalled to their jobs. The Union are
seeking severance terms of 5 weeks' pay per year of service
plus statutory redundancy. They maintain, that this is the
standard severance terms being offered by companies in the
locality. The Company are only prepared to offer statutory
redundancy terms.
5. A conciliation conference was held on 19th August, 1992
but failed to resolve the issue. The issue was referred by
both parties to the Labour Court on 8th September, 1992 and
the Court investigated the matter on 8th October, 1992 in
Cavan.
UNION'S ARGUMENTS:
3. 1. The going rate in severance terms, for companies in the
locality, is 5 weeks pay per year of service plus statutory
redundancy and the union are only seeking to maintain that
standard.
2. The cost of the severance terms to the company, given
the relatively short service of the employees concerned,
would be small.
COMPANY'S ARGUMENTS:
4. 1. The Company is a subsidiary of the Kingspan Group but is
required to stand alone within the group and is regarded as a
separate profit centre.
2. The Company made a loss in 1991 and is heading for a
further loss in the current year. The Company, as a result
of this, has had to pull out of the U.K. market earlier this
year. (Company's audited accounts were made available to the
Court).
3. The Company is now concentrating on the Irish market
where there has been an increase in the number of
competitors, market size has decreased and margins have
fallen sharply.
4. In view of its serious trading and financial position,
the Company is not in a position to offer anything other than
statutory severance terms to the employees concerned.
RECOMMENDATION:
Having considered the submissions of the parties and taken account
of the trading and financial position of the business, the Court
recommends that the Company pay each of the six redundant workers
a sum of #1,000 inclusive of all statutory entitlements, where
applicable, in settlement of the Union's claim.
The Court so recommends.
~
Signed on behalf of the Labour Court
3rd November, 1992 Kevin Heffernan
P.O.C./M.H. --------------------------------
Chairman.
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Paul O'Connor, Court Secretary.