Labour Court Database __________________________________________________________________________________ File Number: CD95382 Case Number: LCR14842 Section / Act: S20(1) Parties: ASTRA STORES LIMITED (THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION) - and - MANDATE |
Dispute concerning the making of 23 workers redundant.
Recommendation:
The Court has fully considered all of the issues raised by the
parties.
Given all the circumstances of the case the Court recommends that
the Company increase the severance payments by 60%.
The Court so recommends.
Division: Mr McGrath Mr Pierce Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD95382 RECOMMENDATION NO. LCR14842
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969
PARTIES:
ASTRA STORES LIMITED
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION)
AND
MANDATE
SUBJECT:
1. Dispute concerning the making of 23 workers redundant.
BACKGROUND:
2. 1. The Company operated a Supervalue store in Tallaght. In
1993, the Company was closed due to trading losses and
it was taken over by its biggest creditor, Musgraves
Ltd. The workers were made redundant on statutory
terms.
2. Musgraves re-employed 30 workers and invested in
modernising the store. In 1994, the Company was still
losing money and discussions took place with the Union
on staff cuts. Some cuts were made by natural wastage
but further cuts were sought.
3. The Court sought to make 7 workers redundant on a last
in first out basis. The Company was not prepared to pay
in excess of statutory entitlements. The Union placed a
picket on the store on 9th June, 1995. On the following
week, the store issued RP1, RP2 and redundancy cheques
to its workers.
4. By letter of 26th June, 1995, the Union submitted the
dispute to the Labour Court under the terms of Section
20(1) of the Industrial Relations Act, 1969. The Court
investigated the dispute on 11th June, 1995.
UNION'S ARGUMENTS:
3. 1. The Company (Musgraves) is highly profitable and it is
unjust of it to offer only statutory redundancy terms.
The Company has established terms for closures in
similar circumstances in other parts of its operations.
2. The Company has paid redundancy terms of 3 to 5 weeks'
pay per year of service plus statutory entitlements in
other areas of its operations. The Union's claim is for
4 weeks' pay per year of service. The claim is
reasonable given the financial position of the Company
and the low level of service of the workers.
COMPANY'S ARGUMENTS:
4. 1. The Company acknowledges the huge contribution made by
the workers in the process of trying to turn the store
around to viability. Unfortunately the joint efforts of
the Company and workforce were unsuccessful and the
store became insolvent.
2. The Company was resolved to make a further attempt to
make the store viable. Unfortunately the strike at the
store made the Company's position untenable and closure
became inevitable. The store closed because of
insolvency and there is no scope for increasing the
severance package beyond statutory entitlements.
RECOMMENDATION:
The Court has fully considered all of the issues raised by the
parties.
Given all the circumstances of the case the Court recommends that
the Company increase the severance payments by 60%.
The Court so recommends.
~
Signed on behalf of the Labour Court
3rd August, 1995 Tom McGrath
J.F./D.T. -------------
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Jerome Forde, Court Secretary.