Labour Court Database __________________________________________________________________________________ File Number: CD95628 Case Number: LCR15009 Section / Act: S26(1) Parties: WIGGINS TEAPE LIMITED (Represented by THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION) - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Claim by the Union on behalf of seven workers for improved redundancy terms.
Recommendation:
The Court, given all the circumstances of this case, recommends
that the severance package be improved as follows:-
3 weeks basic pay per year of service plus statutory
entitlements plus £1,750.
Division: Mr McGrath Mr McHenry Mr Walsh
Text of Document__________________________________________________________________
CD95628 RECOMMENDATION NO. LCR15009
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
WIGGINS TEAPE LIMITED
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION)
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Claim by the Union on behalf of seven workers for improved
redundancy terms.
BACKGROUND:
2. The Company is involved in the manufacture of stationery,
paper merchandising and employs 98 workers. In October, 1995
management made a decision to close down the distribution
department and contract out its delivery service. Seven of
the eight drivers involved opted for redundancy. The Company
offered redundancy terms based on an agreed formula, operated
in two previous redundancy situations i.e., 3 weeks pay per
year of service plus statutory plus £500. The Union rejected
the offer and claimed £2,000 per worker per year of service.
Local discussions failed to resolve the issue and the dispute
was referred to the Labour Relations Commission. A
conciliation conference was held on the 3rd November, 1995.
Agreement was not possible and the dispute was referred to
the Labour Court on the 8th November, 1995. A Court hearing
was held on the 21st November,1995.
UNION'S ARGUMENTS:
3. 1. Previous redundancies were effected on a voluntary
basis. In the case of the drivers concerned in this
dispute the redundancies are compulsory.
2. The workers concerned have given excellent co-operation
to the Company over the past number of years. They
agreed to early opening and late closing of the plant
which resulted in substantial savings to the Company.
They also reverted from two to one driver operations and
conceded the overnight stay thus affording the Company
better utilisation of the fleet.
3. Whilst the Company generated considerable savings
through these concessions drivers received no increases
in rates or improvements to their conditions.
4. If workers are relocated in the plant they will suffer a
considerable loss in earnings (details supplied to the
Court). Therefore, redundancy is their only option.
They are entitled to a reasonable redundancy settlement
which should be based on the Union's proposal.
COMPANY'S ARGUMENTS:
4. 1. The Company faces severe competition from both within
Ireland and from foreign imports. The Company is
unable, through its own fleet, to compete with the
service its competitors are offering. The lack of
service/competitiveness with regard to the delivery
service, should it continue, would seriously impinge on
the Company as a whole. To ensure the Company's
survival it is essential that distribution of product
matches that of competitors.
2. The Company's redundancy offer is fair and reasonable.
Since 1991, when redundancies occurred, the Company has
applied the agreed formula and three workers in other
departments, who will leave the Company shortly, accepted
the agreed package.
3. The principle of redundancies is not in dispute.
However, in view of its financial situation, the Company
cannot afford to concede the Union's claim which in
effect would amount to 10 weeks' pay per worker per year
of service.
RECOMMENDATION:
The Court, given all the circumstances of this case, recommends
that the severance package be improved as follows:-
3 weeks basic pay per year of service plus statutory
entitlements plus £1,750.
~
Signed on behalf of the Labour Court
13th December, 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.