Labour Court Database __________________________________________________________________________________ File Number: CD92688 Case Number: LCR13885 Section / Act: S26(1) Parties: EZI-DIAROC LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Claim by the Union, on behalf of 4 workers, for increased redundancy payments.
Recommendation:
4. The Court, having considered all of the views expressed by the
parties has come to the conclusion that in the circumstances of
this case, the redundancy terms should be 3.50 weeks' pay per year
of service plus statutory entitlements.
The Court so recommends.
Division: MrMcGrath Mr McHenry Mr Walsh
Text of Document__________________________________________________________________
CD92688 RECOMMENDATION NO. LCR13885
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: EZI-DIAROC LIMITED
(REPRESENTED BY THE FEDERATION OF IRISH EMPLOYERS)
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Claim by the Union, on behalf of 4 workers, for increased
redundancy payments.
BACKGROUND:
2. The Company operated as a distributor for De Beers Industrial
Diamonds at Shannon Industrial Estate. In January, 1992, the
Company became an agent for De Beers and approximately 90% of its
business was transferred to one of its European agencies. The
Company is now ceasing operations in Ireland and is making its
four employers redundant. The Company has offered redundancy
compensation of 3 weeks' pay per year of service inclusive of
statutory entitlement. The Union rejected the offer and claimed
4.50 weeks inclusive of statutory entitlements. The issue was
referred to the Labour Relations Commission on the 15th October,
1992. A conciliation conference was held on the 30th October,
1992 but no agreement was reached. The dispute was referred to
the Labour Court by the Labour Relations Commission on the 9th
November, 1992. A Court hearing was held in Limerick on the 18th
November, 1992.
UNION'S ARGUMENTS:
3. 1. The four workers concerned are being made compulsorily
redundant. Their chances of obtaining alternative employment
in the area in the present economic climate are remote. The
Company can afford the extra payments claimed by the Union.
The combined service of the workers is 40 years. Other
employments in the region, who declared workers redundant,
offered settlements in the region of 5 weeks' pay per year of
service plus statutory entitlements.
COMPANY'S ARGUMENTS:
4. 1. Since January, 1992, when 90% of the Company's work was
lost, there was sufficient work for only one employee for
approximately 2-3 hours per day. Instead of placing the other
employees on lay-off, the Company maintained full-time
employment for the 4 workers concerned over a period of ten
months. During this time the Company actively sought to
regain old or generate new business but to no avail.
2. In a previous redundancy situation in the Company in 1984,
workers were paid redundancy terms of 2-3 weeks' pay per year
of service inclusive of statutory. The norm in the region is
approximately 3-3.50 weeks' pay inclusive of statutory
entitlements.
RECOMMENDATION:
4. The Court, having considered all of the views expressed by the
parties has come to the conclusion that in the circumstances of
this case, the redundancy terms should be 3.50 weeks' pay per year
of service plus statutory entitlements.
The Court so recommends.
~
Signed on behalf of the Labour Court
Tom McGrath
_____________________
30th November, 1992. Deputy Chairman.
T.O'D./J.C.
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Tom O'Dea, Court Secretary.