Labour Court Database __________________________________________________________________________________ File Number: CD95163 Case Number: LCR14802 Section / Act: S26(1) Parties: COW AND GATE NUTRICIA (WEXFORD) - and - MANUFACTURING SCIENCE FINANCE;SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION;AMALGAMATED ENGINEERING ELECTRICAL UNION;TECHNICAL ENGINEERING AND ELECTRICAL UNION |
Redundancy Terms.
Recommendation:
Having considered all the circumstances of this case, the Court
makes the following recommendation.
The parties to enter into discussions on a Severance Package to
cover employees who will be made redundant at this plant.
These negotiations to be completed by end of July, 1995.
In the event that the parties fail to agree a package by that
time, the Court will, on request from either side, make a
recommendation on the issue.
Division: Mr Flood Mr Keogh Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD95163 RECOMMENDATION NO. LCR14802
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
COW AND GATE NUTRICIA (WEXFORD)
AND
MANUFACTURING SCIENCE FINANCE
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
AMALGAMATED ENGINEERING ELECTRICAL UNION
TECHNICAL ENGINEERING AND ELECTRICAL UNION
SUBJECT:
1. Redundancy Terms.
BACKGROUND:
2. The dispute concerns redundancy terms on behalf of workers
represented by the four Unions. The Company employs
approximately 120 workers in its plant in Wexford. The
Company proposes to transfer the Wexford operation to
Macroom, Co. Cork in November, 1995, with the loss of most of
the jobs in Wexford.
The Unions are seeking the following redundancy terms:-
- 8 weeks pay per year of service plus statutory
entitlements;
- pay to include bonus, shift pay and allowances;
- early retirement package as an alternative;
- consideration for past services on shift pay.
A number of meetings at local level have taken place since
the Company announced its intention in October, 1994, to move
to Macroom. The Company explained that it was hopeful that a
number of jobs might be saved with some workers transferring
to Macroom. Canning was to remain in Wexford for some time.
The Company also advised that some outside companies were
interested in buying the plant in Wexford, with the
possibility of providing jobs for some of the workers.
The Unions expressed concern at delays in negotiations. They
claimed that the longer the Company/Union meetings continued
regarding redundancy terms the weaker their bargaining
position would be. The Company maintains that it needs time
to obtain all relevant facts before making an offer on the
redundancy terms.
The dispute was referred to the Labour Relations Commission
and a conciliation conference took place on 20th February,
1995. No agreement was reached and the dispute was referred
to the Labour Court on 27th February, 1995, under Section
26(1) of the Industrial Relations Act, 1990. A Labour Court
hearing took place on 19th May, 1995, (the earliest date
suitable to the parties).
UNIONS' ARGUMENTS:
3. 1. The Company is highly profitable, with a turnover in
excess of #50m. It is moving its operation to the new
plant in Macroom to increase its profits, not because of
a lack of competitiveness. The workers concerned, who
have contributed to the Company's profitability, deserve
increased redundancy terms above the present agreement
of 4.5 weeks pay plus statutory entitlements.
2. There is little prospect of alternative employment for
most of the workers who have an average service of 20
years. Many of the workers are in the 40/50 years age
group.
COMPANY'S ARGUMENTS:
4. 1. The Company gave approximately one years' notice of its
intention to move to Macroom. The reason for the move
is because of closer proximity to the milk supply and
future quality improvements. The Company has always
stated the need for adequate time to conduct a job
creation/ retention programme. It is hoped that as many
as 60 jobs may be created (details supplied to the
Court).
2. The Company has undertaken not to seek mandatory
redundancies before 1st November, 1995. Early leavers
will receive statutory redundancy plus a finally agreed
package when negotiations have been agreed.
RECOMMENDATION:
Having considered all the circumstances of this case, the Court
makes the following recommendation.
The parties to enter into discussions on a Severance Package to
cover employees who will be made redundant at this plant.
These negotiations to be completed by end of July, 1995.
In the event that the parties fail to agree a package by that
time, the Court will, on request from either side, make a
recommendation on the issue.
~
Signed on behalf of the Labour Court
27th June, 1995 Finbarr Flood
C.O'N./M.M. _______________
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Ciaran O'Neill, Court Secretary.