Labour Court Database __________________________________________________________________________________ File Number: CD9422 Case Number: LCR14375 Section / Act: S26(1) Parties: GAELTARRA KNITWEAR LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION;M.S.F (MANUFACTURING SCIENCE FINANCE |
Claim for enhanced redundancy compensation for four workers.
Recommendation:
The Court has considered all of the circumstances of the dispute
as expressed by the parties and recommends that employees being
made redundant receive one week's pay per year of service, plus
statutory entitlement, together with the rebate on the statutory
entitlement.
The Court so recommends.
Division: MrMcGrath Mr McHenry Mr Rorke
Text of Document__________________________________________________________________
CD9422 RECOMMENDATION NO. LCR14375
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
GAELTARRA KNITWEAR LIMITED
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
M.S.F (MANUFACTURING SCIENCE FINANCE)
SUBJECT:
1. Claim for enhanced redundancy compensation for four workers.
BACKGROUND:
2. The Company is a wholly-owned subsidiary of Udaras na
Gaetachta. It is situated in Co. Mayo, employing 72 workers.
In 1992, the Company announced 7 redundancies. The
redundancy package included one week's pay per year service,
plus the rebate. Three workers accepted this offer but the 4
workers concerned with the dispute rejected it. The Unions
sought a redundancy package of 3 week's pay per year service,
plus rebate.
In January 1993, the 4 workers concerned were made redundant
and received entitlements only. The workers' service and
their statutory lump sums are as follows:
SERVICE STATUTORY LUMP SUM
14 years #1,471.54
16 years #1,464.10
23 years #2,306.25
28 years #5,000.00
A number of meetings at local level were followed by two
conciliation conferences with the Labour Relations Commission
but no agreement was reached. The dispute was referred to
the Labour Court on 14th January, 1994 under Section 26(1)
Industrial Relations Act, 1990. A Labour Court hearing took
place on 23rd February, 1994 in Castlebar.
UNION'S ARGUMENTS:
3. 1. The 4 workers concerned were made redundant in January,
1993. There was no option of voluntary redundancy. In
March, 1992 three workers who were made redundant received
settlements of 2.50 weeks pay per year of service, plus
retention of Company cars. Redundant workers in 1990
received compensation of 4 weeks pay per year service.
2. The workers concerned have had difficulties in securing
alternative work since being made redundant. They have given
long years of service to the Company and should be
compensated with an increased redundancy settlement.
COMPANY'S ARGUMENTS:
4. 1. The Company has experienced substantial losses in the
last 4 years, resulting in a reduced workforce and a
non-replacement policy. A further 8 workers will be made
redundant.
2. The Company cannot afford to pay more than statutory
redundancy to the workers concerned if it is to safeguard
further jobs.
RECOMMENDATION:
The Court has considered all of the circumstances of the dispute
as expressed by the parties and recommends that employees being
made redundant receive one week's pay per year of service, plus
statutory entitlement, together with the rebate on the statutory
entitlement.
The Court so recommends.
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Signed on behalf of the Labour Court
16th March, 1994. Tom McGrath
C.O'N./A.L. _______________
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Ciaran O'Neill, Court Secretary.