Labour Court Database __________________________________________________________________________________ File Number: CD9490 Case Number: LCR14570 Section / Act: S20(1) Parties: MILFORD FOODS LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Claim for; (i) enhanced redundancy payments to two workers; (ii) the payment of the last phase of the Programme for National Recovery (PNR) and all phases of the Programme for Economic and Social Progress (P.E.S.P.) to three employees.
Recommendation:
Having considered the submissions from the parties and taking into
account the trading history of the Company the Court is of the
view that the Company should offer and the claimants accept
enhanced redundancy payment calculated on the basis of 1.50 weeks
pay per year of service less what has already been paid. The
Court recommends as above because of the particular circumstances
pertaining to the two claimants.
The Court notes that by agreement with the parties the only issue
to be decided was the question of enhanced redundancy payments.
Division: Ms Owens Mr Brennan Mr Rorke
Text of Document__________________________________________________________________
CD9490 RECOMMENDATION NO. LCR14570
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969
PARTIES:
MILFORD FOODS LIMITED
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Claim for; (i) enhanced redundancy payments to two workers;
(ii) the payment of the last phase of the Programme for
National Recovery (PNR) and all phases of the Programme for
Economic and Social Progress (P.E.S.P.) to three employees.
BACKGROUND:
2. The Company is engaged in the bakery and flour milling
industry and employed approximately 130 workers in its flour
milling and bakery divisions located at Milford,
Ballyshannon, Downings and Dundalk. Since July, 1990 the
Company has re-organised and currently employs 13 workers.
The dispute before the Court concerns the Union's claim for
enhanced redundancy payments and the payment of the last
phase of the PNR and all phases of P.E.S.P.
The workers concerned in the dispute commenced their
employment in the late 1970's as clerical workers. Their
employment was terminated on 9th July, 1993. They were paid
statutory redundancy entitlements.
The Union sought the application of the terms of an agreement
reached with the Company in 1989 which allowed for the
payment of #360 per year of service inclusive of statutory
entitlements. The Company rejected the claim. An invitation
to attend at a Rights Commissioner's hearing was declined by
the Company.
The Union referred the dispute to the Labour Court in
accordance with Section 20(1) of the Industrial Relations
Act, 1969 and agreed to be bound by the Court's
recommendation. A Labour Court hearing took place in Donegal
on 15th September, 1994.
UNION'S ARGUMENTS:
3. 1. The workers are covered by the agreement reached with
management on 28th April, 1989 which provided for the
payment of #360 per year of service. The Company should
honour the agreement.
2. The workers have been unfairly treated by the Company.
They have given approximately 14 years loyal service and
co-operated fully with management during a long period
of industrial unrest. In the circumstances it is normal
practice to pay workers enhanced redundancy payments.
COMPANY'S ARGUMENTS:
4. 1. The final phase of the PNR was paid to the workers
concerned on 1st October, 1991. The arrears due for the
period 1st April, 1990 to 30th September, 1991, were
paid on 5th February, 1992.
2. Due to its serious financial position the Company was
unable to make further adjustments to the basic pay of
any category of employee. This was because of the
various and often stark commercial realities faced by
the business following October, 1991. To have conceded
further increases in such circumstances would have been
irresponsible. To do so retrospectively would be to
ignore those difficulties and would lead to
consequential claims from ex-employees who have been
made redundant.
3. The Company has recorded substantial losses during the
past 5 years (details supplied to the Court).
4. The agreement reached in 1989 arose out of exceptional
circumstances recognised by both parties and was part of
the settlement terms of a long and bitter strike in
April, 1989. These terms were applied to 18 mill
operative staff only and were not extended to any other
categories of employees in the bakery or elsewhere.
5. Since July, 1990 the Company has implemented 60
redundancies, including 32 members approximately of the
Bakery and Food Workers' Amalgamated Union (B.F.W.A.U.)
at Milford, and 14 B.F.W.A.U. members, following the
closure of the Ballyshannon Bakery. In all of these
cases the Company paid statutory redundancy
entitlements. There were no claims from any employees
made redundant except for the 2 workers concerned.
6. The Company position in respect of both claims is
absolute and must remain so given the scale of business
decline over recent years, the financial position as
outlined and the knock-on effects of concession of
either claim.
RECOMMENDATION:
Having considered the submissions from the parties and taking into
account the trading history of the Company the Court is of the
view that the Company should offer and the claimants accept
enhanced redundancy payment calculated on the basis of 1.50 weeks
pay per year of service less what has already been paid. The
Court recommends as above because of the particular circumstances
pertaining to the two claimants.
The Court notes that by agreement with the parties the only issue
to be decided was the question of enhanced redundancy payments.
~
Signed on behalf of the Labour Court
12th October, 1994 Evelyn Owens
F.B./M.M. ____________
Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Fran Brennan, Court Secretary.