Labour Court Database __________________________________________________________________________________ File Number: CD95575 Case Number: LCR14946 Section / Act: S26(1) Parties: UNIPHAR (THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION) - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Dispute concerning conditions relating to closure of the Finglas Plant.
Recommendation:
The Court has fully considered all of the issues raised by the
parties in their oral and written submissions and the
circumstances which give rise to the closure of the Finglas depot.
In all the circumstances, the Court, in an endeavour to assist the
parties, makes the following recommendations.
1 Redundancy Package:
1.1 That employees being made redundant receive 4 weeks' pay per
year of service plus the statutory entitlement.
1.2 That the ceiling of #28,000 proposed by the Company be
increased to #30,000.
1.3 That in regard to particular staff referred to during the
hearing, the following arrangements be applied to them:-
(i) J. Cleary - Driver - That Mr. Cleary be given the
choice of the following -
(a) Full-time driving job at the Stillorgan depot
or
(b) The severance package as outlined above.
(ii) Ms. A. Carton - That Ms. Carton be given the choice of
transferring to Stillorgan at the rate of pay on offer,
or, accepting redundancy on the terms outlined above.
In the event that she accepts transfer to the
Stillorgan depot, it is recommended she be paid
compensation for loss of earnings of two times the
annual loss.
1.4 The Court, noting that there are likely to be up to three
cases where transfer to Stillorgan would create exceptional
hardship, recommends the Company agree the redundancy terms
be applied to these cases.
1.5 The Court does not recommend the severance terms be extended
to include any other category of employee.
2 Flexible Hours.
2.1 The Court, noting the Company are prepared to assist
employees transferring by allowing flexibility in the hours
of work, and with a view to ensuring the operation of
flexible hours does not give rise to problems, recommends
that the parties agree arrangements for the operation of
flexible working time.
3. Relocation Costs.
3.1 The Court recommends the following amounts be paid to staff
on transfer from Finglas to Stillorgan:-
Telesales Staff - #1500
Drivers - # 600
Spare Drivers - # 700
4. Seniority
4.1 On transfer, seniority of employees will be calculated in
accordance with the service accrued in the Finglas depot.
5. Terms and Conditions of Employment.
5.1 The Court notes the terms and conditions of employment at
both Finglas and Stillorgan are on offer to the employees and
these will be increased in accordance with awards in the
future.
The Court recommends that the choice of the terms and
conditions to apply on transfer (Stillorgan or Finglas), lies
with the individual.
The Court considers however, that the application of
different terms and conditions of employment in the one depot
for the future, could prove to be divisive and, accordingly,
recommends the parties monitor development and give
consideration to agreeing common terms and conditions.
6. Agreements.
6.1 The Court, in the interest of clarity and with a view to
ensuring there is no ambiguity regarding agreements made
between the parties, recommends for the future that the
outcome of discussions and any agreements reached be detailed
in writing.
The Court puts forward the above recommendations as a package
of measures to secure a smooth transfer to the Stillorgan
depot.
The Court request that the parties recommend it to their
constituents for acceptance.
Division: Mr McGrath Mr Pierce Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD95575 RECOMMENDATION NO. LCR14946
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
UNIPHAR
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION)
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
Dispute concerning conditions relating to closure of the
Finglas Plant.
BACKGROUND:
The Company was established following the amalgamation of
United Pharmaceuticals Co-Operative and Allied Pharmaceutical
Distribution. It has two depots, one in Finglas and one in
Stillorgan and for some time operated both. Management now
proposes to close the Finglas depot and centralise its
operations in Stillorgan. The Company maintains that this
decision was imperative to avoid further financial losses and
secure the jobs of 180 workers throughout its operation. The
Company proposes a voluntary severance package for all
administrative and warehouse staff and the transfer of
drivers and telesales staff to Stillorgan. Any
administrative/warehouse staff not wishing to avail of
redundancy will be accommodated with a job in Stillorgan.
The Company's severance package amounts to four weeks' pay
per year of service plus statutory entitlements subject to a
maximum of #28,000. The Union sought increased terms plus
the extension of the ceiling to #40,000. The Union also
sought assurances from the Company relating to the seniority
of staff transferring to Stillorgan and the maintenance of
conditions of employment enjoyed by the workers at Finglas.
Agreement was not possible at local level discussions and the
dispute was referred to the Labour Relations Commission.
Conciliation Conferences were held on the 20th and 29th of
September, but no agreement could be reached. The dispute
was referred to the Labour Court on the 4th October, 1995. A
Court hearing was held on the 10th October, 1995.
UNION'S ARGUMENTS:
1. The Company must offer the workers concerned a redundancy
package which adequately addresses their situation. Its
offer is not in line with the industry norm and the ceiling
should be increased.
A disturbance payment to compensate for the cost in time and
financial burden which will arise must be made to workers
transferring to Stillorgan. The package must be open to all
and set at an acceptable level to ensure workers on long
service get a fair settlement. The Company must address the
positions of Mr. Cleary and Ms. A. Carton (Details supplied
to the Court).
2. The workers transferring are concerned about their seniority
and pay levels. A number of drivers feel that they will not
be treated in line with their years in the Company.
Telesales workers at Finglas are aware that rates of pay in
Stillorgan are below those currently enjoyed.
3. Telesales staff who to date have operated calls to current
customers are now expected to do cold calling and promotional
sales. This is a major change and a very difficult task.
4. During negotiations, Management undertook to give sympathetic
consideration to workers, not in receipt of a redundancy
offer, and experiencing difficult circumstances.
Subsequently, the Company stated it was willing to consider
only two extra cases. This means that a number of workers
whose circumstances made it impractical to transfer, are left
in an impossible position.
5. The Company has failed to provide written confirmation of any
agreements. This has led to confrontation, obstruction and
disharmony. Workers must be treated fairly and reasonably.
COMPANY'S ARGUMENTS:
1. The Company's redundancy package is in line with the industry
norm of four weeks' pay plus statutory entitlement. These
terms have been applied in the Pharmaceutical Industry in
1994/1995. The Company proposes to adjust the ceiling to
#29,000. The extension of redundancy to all staff is neither
practical nor possible. There are positions available in
Stillorgan for each of the drivers and telesales staff doing
the same job. The Company is prepared to consider a maximum
of two further redundancies subject to essential skills being
maintained.
2. The Company is prepared to recognise service accrued at the
Finglas depot for seniority purposes.
3. The Company is fully committed to ensuring that all staff
transferred to Stillorgan are treated fairly.
4. The Company is prepared to assist workers transferred to
Stillorgan in allowing for flexibility in terms of starting
times i.e., 8.30 to 9.30 a.m.
5. There are some differences between Finglas and Stillorgan
conditions of employment. Management has given each of the
Finglas staff relevant details and suggested that they can
either choose to have Stillorgan conditions at the time of
the move or alternatively retain Finglas conditions. The one
exception is Ms. A. Carton, Telesales Supervisor, Finglas,
who will move to the same job, supervising the same staff.
Her rate of pay will be reduced. The Company is prepared to
agree a compensation payment.
6. The Company is prepared to make lump sum payments to staff
moving to Stillorgan as follows:-
Telesales #800
Drivers #500
Spare Drivers #600
7. The Company's proposals are fair and reasonable. The
procedures used are fair. It is acknowledged that
centralisation is a great disappointment to staff, however,
continuing major losses at Finglas cannot be sustained.
RECOMMENDATION:
The Court has fully considered all of the issues raised by the
parties in their oral and written submissions and the
circumstances which give rise to the closure of the Finglas depot.
In all the circumstances, the Court, in an endeavour to assist the
parties, makes the following recommendations.
1 Redundancy Package:
1.1 That employees being made redundant receive 4 weeks' pay per
year of service plus the statutory entitlement.
1.2 That the ceiling of #28,000 proposed by the Company be
increased to #30,000.
1.3 That in regard to particular staff referred to during the
hearing, the following arrangements be applied to them:-
(i) J. Cleary - Driver - That Mr. Cleary be given the
choice of the following -
(a) Full-time driving job at the Stillorgan depot
or
(b) The severance package as outlined above.
(ii) Ms. A. Carton - That Ms. Carton be given the choice of
transferring to Stillorgan at the rate of pay on offer,
or, accepting redundancy on the terms outlined above.
In the event that she accepts transfer to the
Stillorgan depot, it is recommended she be paid
compensation for loss of earnings of two times the
annual loss.
1.4 The Court, noting that there are likely to be up to three
cases where transfer to Stillorgan would create exceptional
hardship, recommends the Company agree the redundancy terms
be applied to these cases.
1.5 The Court does not recommend the severance terms be extended
to include any other category of employee.
2 Flexible Hours.
2.1 The Court, noting the Company are prepared to assist
employees transferring by allowing flexibility in the hours
of work, and with a view to ensuring the operation of
flexible hours does not give rise to problems, recommends
that the parties agree arrangements for the operation of
flexible working time.
3. Relocation Costs.
3.1 The Court recommends the following amounts be paid to staff
on transfer from Finglas to Stillorgan:-
Telesales Staff - #1500
Drivers - # 600
Spare Drivers - # 700
4. Seniority
4.1 On transfer, seniority of employees will be calculated in
accordance with the service accrued in the Finglas depot.
5. Terms and Conditions of Employment.
5.1 The Court notes the terms and conditions of employment at
both Finglas and Stillorgan are on offer to the employees and
these will be increased in accordance with awards in the
future.
The Court recommends that the choice of the terms and
conditions to apply on transfer (Stillorgan or Finglas), lies
with the individual.
The Court considers however, that the application of
different terms and conditions of employment in the one depot
for the future, could prove to be divisive and, accordingly,
recommends the parties monitor development and give
consideration to agreeing common terms and conditions.
6. Agreements.
6.1 The Court, in the interest of clarity and with a view to
ensuring there is no ambiguity regarding agreements made
between the parties, recommends for the future that the
outcome of discussions and any agreements reached be detailed
in writing.
The Court puts forward the above recommendations as a package
of measures to secure a smooth transfer to the Stillorgan
depot.
The Court request that the parties recommend it to their
constituents for acceptance.
~
Signed on behalf of the Labour Court
24th October, 1995 Tom McGrath
T.O.D./A.K. ---------------
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Tom O'Dea, Court Secretary.