Labour Court Database __________________________________________________________________________________ File Number: CD95110 Case Number: LCR14728 Section / Act: S20(1) Parties: F. CUNNINGHAM AND SONS MOTOR GROUP (TULLAMORE) LIMITED (O'REFFERTY POWDERLY) - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Redundancy Compensation.
Recommendation:
The Court, having considered all the views of the parties
expressed in their oral and written sumbissions, recommends that
the employees' severance pay be 2 weeks pay per year of service
inclusive of statutory payments together with the rebate (60% of
statutory payment).
Division: Mr McGrath Mr Pierce Mr Rorke
Text of Document__________________________________________________________________
CD95110 RECOMMENDATION NO. LCR14728
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969
PARTIES:
F. CUNNINGHAM AND SONS MOTOR GROUP (TULLAMORE) LIMITED
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Redundancy Compensation.
BACKGROUND:
2. The Company is involved in the motor trade. It has
experienced very difficult trading conditions in recent years
and has been forced to make 3 workers redundant. The Company
proposes to pay the workers their statutory redundancy
entitlements. The Union's claim, on behalf of the 3 workers,
is for 3 weeks pay per year of service plus statutory
payments. Management rejected the claim. The parties failed
to reach agreement at local level discussions and the Union
referred the dispute to the Labour Court under Section 20(1)
of the Industrial Relations Act, 1969 and agreed to be bound
by the Court's recommendation. The Court investigated the
dispute on the 27th February, 1995. A letter recommednation
was issued on the 12th April, 1995.
UNION'S ARGUMENTS:
3. 1. The Company traded very profitably until recently and
the workers concerned gave significant co-operation to
the development and profitability of the Company over
the years. They have many years of service in the
employment and have an expection of a reasonable level
of compensation for the loss of their jobs.
2. The Union's claim for 3 weeks pay plus statutory
entitlements will not place a significant financial
burden on the Company. The average level of redundancy
settlements throughout industry range between 3-4 weeks'
pay plus statutory entitlements.
COMPANY'S ARGUMENTS:
4. 1. Over the past two years the Company's trading position
has deteriorated significantly. Management delayed
making a decision to declare the 3 workers redundant in
the hope that the Company's situation would improve and
that the workers could be retained in the employment.
Unfortunately this did not occur.
2. The Company cannot pay more than statutory entitlements
and even these payments will put a severe strain on the
Company's financial position (details supplied to the
Court).
RECOMMENDATION:
The Court, having considered all the views of the parties
expressed in their oral and written sumbissions, recommends that
the employees' severance pay be 2 weeks pay per year of service
inclusive of statutory payments together with the rebate (60% of
statutory payment).
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Signed on behalf of the Labour Court
24th April, 1995 Tom McGrath
T.O'D./D.T. _______________
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Tom O'Dea, Court Secretary.