Labour Court Database __________________________________________________________________________________ File Number: CD93653 Case Number: LCR14276 Section / Act: S26(1) Parties: DATAPRODUCTS (DUBLIN) - and - MANUFACTURING SCIENCE FINANCE |
Redundancy terms.
Recommendation:
7. Having considered all the points made by the parties in their
submissions and in oral argument at the hearing, the Court
recommends that the Company, before embarking on compulsory
redundancies, should in the first instance seek suitable
candidates for voluntary redundancy.
The Court also recommends that in addition to statutory
entitlements the terms for voluntary redundancy should be four
weeks per year of service with the maximum payment not exceeding
#25,000.
Division: Mr Heffernan Mr Brennan Mr Rorke
Text of Document__________________________________________________________________
CD93653 RECOMMENDATION NO. LCR14276
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
INDUSTRIAL RELATIONS ACT, 1990
SECTION 26(1)
PARTIES: DATAPRODUCTS (DUBLIN)
(Represented by The Irish Business and Employers Confederation)
and
MANUFACTURING SCIENCE FINANCE
SUBJECT:
1. Redundancy terms.
BACKGROUND:
2. Dataproducts which commenced its operation in Ireland in 1965,
was taken over by Hitachi in 1990. The Company's core business
is the manufacture of computer printers but it is currently
undergoing a change to the manufacture of power-hand-tools.
3. In recent years, the Company implemented a number of voluntary
redundancies using its established redundancy formula of 4 weeks'
pay per year of service plus statutory entitlements with an upper
limit of an amount equal to 30 weeks' pay. Some compulsory
redundancies have also taken place.
4. In October, 1993, the Company sought a further 8/10
redundancies. Local level discussions took place at which the
Union proposed the removal of the upper limit. The Company
rejected the proposal and the matter was referred to the Labour
Relations Commission. A number of conciliation conferences took
place after which the Company increased its upper limit to 38.5
weeks' pay and the Union indicated that it would accept an upper
limit of #25,000. The matter was referred to the Labour Court on
18th November, 1993. The Labour Court hearing took place on 23rd
November, 1993. A recommendation was issued by letter on 3rd
December, 1993.
UNION'S ARGUMENTS:
5. 1. In November, 1992 the Union reached agreement with the
Company which removed the limit on the number of years
service, i.e. cap removed. This package was offered to
workers on a voluntary basis.
2. The Company's offer which imposes a ceiling effectively
renders a voluntary redundancy scheme useless.
3. An agreement reached at conciliation (subject to overall
agreement on redundancy terms) gives the Company
considerable scope to select or retain personnel.
4. The Company's policy of imposing a ceiling on redundancy
terms guarantees that only low service low paid
employees will leave the Company. This will result in a
greater number of redundancies in order to achieve the
targeted cost savings.
5. The Union is not opposing the redundancies or seeking an
increase in redundancy terms. It is requesting that the
Company honour its agreement with the Union and so
achieve the restructuring required by agreement and in a
spirit of mutual trust and co-operation.
COMPANY'S ARGUMENTS:
6. 1. The Union has stated that it will enter into dispute if
the Company attempts to implement compulsory
redundancies while placing a ceiling on voluntary
redundancy payments.
2. Dataproducts has provided permanent employment to a
substantial number of workers, since 1965.
3. In recent years, the Company has experienced serious
financial difficulties.
4. Sales of Dataproducts printers have fallen seriously
which has led to overstaffing.
5. The Company has taken timely action to provide
alternative employment in the power-tool business. In
addition it continues to try and improve and reverse the
difficulties in its printer business.
6. In the circumstances the redundancy terms are generous
and the implementation of a reasonable ceiling is
appropriate and necessary.
RECOMMENDATION:
7. Having considered all the points made by the parties in their
submissions and in oral argument at the hearing, the Court
recommends that the Company, before embarking on compulsory
redundancies, should in the first instance seek suitable
candidates for voluntary redundancy.
The Court also recommends that in addition to statutory
entitlements the terms for voluntary redundancy should be four
weeks per year of service with the maximum payment not exceeding
#25,000.
~
Signed on behalf of the Labour Court
Kevin Heffernan
5th January, 1994 -----------------
F.B./U.S. Chairman
NOTE:
Enquiries concerning this Recommendation should be addressed to
Mr Fran Brennan, Court Secretary.