Labour Court Database __________________________________________________________________________________ File Number: CD92552 Case Number: LCR13875 Section / Act: S20(1) Parties: SABENA WORLD AIRLINES - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning the amount of redundancy compensation payable to a worker.
Recommendation:
7. Having considered the submissions from the parties the Court
recommends that the Company increase its offer of the 31st August,
1992 to an inclusive sum of #30,000 in respect of redundancy lump
sum, in addition to #1356.98 already paid in lieu of notice
entitlement.
Division: Ms Owens Mr Keogh Mr Rorke
Text of Document__________________________________________________________________
CD92552 RECOMMENDATION NO. LCR13875
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969
PARTIES: SABENA WORLD AIRLINES
(REPRESENTED BY ARTHUR COX, SOLICITORS)
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Dispute concerning the amount of redundancy compensation
payable to a worker.
BACKGROUND:
2. The Company has slimmed down its operations worldwide because
of the recession in the aviation industry. The worker, who has
thirteen years service, was employed by the Company as station
master and was based at Dublin Airport.
3. On the 9th April, 1992 the worker was advised that the Company
was contracting out the freight department of its Irish operations
and as a consequence his employment was terminated by reason of
redundancy. The Company offered a redundancy lump sum payment of
#1,500 in addition to statutory entitlements. The worker was also
offered a job with the Company taking over the contract. Both
offers were rejected, compensation on the grounds that it was
inadequate and the job as it carried a salary of 50% the worker's
current basic. The Union is seeking a redundancy payment in line
with that paid by Aer Lingus and British Airways in their recent
settlements.
4. The dispute was referred to the Labour Relations Commission.
Conciliation conferences were held on 24th June and 18th August,
1992. Following the conciliation conferences the Company offered,
in addition to statutory entitlements, and ex-gratia lump sum
payment of #15,600. This offer was rejected by the Union. The
Company declined to be party to an agreed referral of the dispute
to the Labour Court. The Union referred the dispute to the Labour
Court for investigation and recommendation under Section 20(1) of
the Industrial Relations Act, 1969. The Union agreed to be bound
by the Court's recommendation. A Court hearing took place on 10th
November, 1992.
UNION'S ARGUMENTS:
5. 1. Given the worker's age and the present state of the
aviation industry his chance of securing suitable alternative
employment in Ireland is negligible.
2. The Company's offer represents poor recognition of 13
years dedicated service in a responsible position. The job
offered by the Company was inadequate as the salary was 50% of
the worker's current basic salary.
3. The Company's offer compares unfavourably with two recent
settlements concluded in the industry. Both agreements were
reached against a background of heavy losses being incurred by
both companies.
COMPANY'S ARGUMENTS:
6. 1. The Company's Dublin air freight business had decreased to
such an extent that it was obliged to close down its freight
department.
2. The Company's Irish operation was very small and cannot be
compared with Aer Lingus or British Airways. Therefore the
Company should not be asked pay extra statutory redundancy
payments of the same magnitude.
3. The Company is losing money and has experienced a general
retrenchment worldwide with nearly 3,000 redundancies. The
Company has offered the worker as much compensation as it can
afford in addition to statutory redundancy entitlements.
RECOMMENDATION:
7. Having considered the submissions from the parties the Court
recommends that the Company increase its offer of the 31st August,
1992 to an inclusive sum of #30,000 in respect of redundancy lump
sum, in addition to #1356.98 already paid in lieu of notice
entitlement.
~
Signed on behalf of the Labour Court
Evelyn Owens
_____________________
27th November, 1992. Deputy Chairman.
M.D./J.C.
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Michael Daughen, Court Secretary.