Labour Court Database __________________________________________________________________________________ File Number: CD9324 Case Number: LCR13959 Section / Act: S26(1) Parties: TRIMFOLD LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Severance pay terms.
Recommendation:
5. The Court, having considered the submissions of the parties,
recommends that the employees being made redundant be paid 2
weeks' pay per year of service inclusive of statutory payments.
Recognising the current financial difficulties of the Company, the
Court recommends the parties to meet to discuss an acceptable
timescale in which the above payments will be effected.
The payments should in any case be made within a period of six
months of acceptance of this Recommendation.
Division: MrMcGrath Mr Keogh Mr O'Murchu
Text of Document__________________________________________________________________
CD9324 RECOMMENDATION NO. LCR13959
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: TRIMFOLD LIMITED
(REPRESENTED BY THE IRISH BUSINESS EMPLOYERS CONFEDERATION)
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Severance pay terms.
BACKGROUND:
2. The Company, which is involved in the manufacture of
envelopes mainly for supply to the U.K. market, employs
approximately 80 people. In October, 1992, the Company informed
the workers that it had taken a decision to close down the "Hand
Fold Section" with the loss of approximately 13 jobs. The Union
submitted a claim for compensation payments of 3-4 weeks' pay per
year of service plus statutory redundancy entitlements on behalf
of the workers concerned. The Company rejected the claim. Local
level discussions failed to resolve the issue and the matter was
referred to the Labour Relations Commission. A conciliation
conference was held on 10th December, 1992, but no agreement could
be reached and the matter was referred to the Labour Court on 7th
January, 1993. The Court hearing took place on 1st February,
1993.
UNION'S ARGUMENTS:
3. 1. Redundancy payments of 3-4 weeks' pay per year of service
is consistent with compensation payments generally made to
redundant workers.
2. Long serving workers employed in the Hand Fold Section
have been re-deployed, displacing junior staff. Redundancy
payments are thereby reduced.
3. The workforce accepted deferment for 3 months of the pay
terms of Phase 1 of P.E.S.P. and have fully co-operated with
management in making every effort possible to save jobs.
Their loyalty to the Company is without question.
4. The prospects of the workers securing employment are bleak
given the current unemployment position. Redundancy payments
of 3-4 weeks' pay per year of service are not unreasonable in
the circumstances.
COMPANY'S ARGUMENTS:
4. 1. During the past 12 months the Company has suffered
substantial losses in the Hand Fold Section.
2. The Company would have attempted to continue the operation
but failed for the following reasons:
(1) The bulk of work for this section came from a
government supply agency which converted to plastic
products approximately 13 months ago.
(2) The currency crisis.
3. As a result of the exchange rate difficulties with
sterling, the Company, in an effort to save the maximum number
of jobs, embarked on a cost saving exerise by attempting to:
(1) Re-negotiate with suppliers (payment in sterling).
(2) Introduce a telephone sales system in its sales
office in England.
(3) Reduce the sales force in England by almost 50%.
(4) Close the Hand Fold Section.
4. The Company is committed to providing as much employment
as possible. It cannot afford to make payments over and above
the statutory entitlement and any additional costs would put
more jobs at risk.
RECOMMENDATION:
5. The Court, having considered the submissions of the parties,
recommends that the employees being made redundant be paid 2
weeks' pay per year of service inclusive of statutory payments.
Recognising the current financial difficulties of the Company, the
Court recommends the parties to meet to discuss an acceptable
timescale in which the above payments will be effected.
The payments should in any case be made within a period of six
months of acceptance of this Recommendation.
~
Signed on behalf of the Labour Court
Tom McGrath
_____________________
16th February, 1993 Deputy Chairman.
F.B./J.C.
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Fran Brennan, Court Secretary.