Labour Court Database __________________________________________________________________________________ File Number: CD95726 Case Number: LCR15148 Section / Act: S26(1) Parties: ST. PATRICK'S COLLEGE, DRUMCONDRA (Represented by IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Severance/redundancy scheme for catering personnel.
Recommendation:
The Court has considered the submissions made by the parties
involved in this dispute and has taken into account the arguments
put forward at the hearing. The Union also submitted additional
information on a recent settlement in another employment.
Taking all the circumstances into account the Court recommends that
for the 3 Categories of workers (as set out in the submissions) the
proposals be amended to read:-
4 weeks' pay per year of service including statutory with
a max. of 26 weeks instead of 2 weeks excluding statutory
with a max. of 18 weeks - (Category A & B refer) and in
Category C as above with max. of 78 weeks.
The Court further recommends that every effort be made to re-locate
employees where feasible.
Further local negotiations should be held on the question of added
pension years for those opting for early retirement.
Division: Ms Owens Mr McHenry Mr Rorke
Text of Document__________________________________________________________________
CD95726 RECOMMENDATION NO. LCR15148
INDUSTRIAL RELATIONS ACT, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES: ST. PATRICK'S COLLEGE, DRUMCONDRA
(Represented by Irish Business and Employers' Confederation)
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Severance/redundancy scheme for catering personnel.
BACKGROUND:
2. 1. St. Patrick's Training College, Drumcondra, has 990
students and 150 staff. The College authorities manage
the day to day operations of the College and receives its
funding from the Higher Education Authority (HEA).
The College's catering facilities are provided by a
combination of contract catering and directly employed
staff.
2. The College has been concerned about the cost of
providing the catering facilities which resulted in
losses of £298K in 1993 and £254K for 1994. The HEAs
policy is that catering organisations should operate on a
breakeven basis.
3. In May, 1994, the College decided to contract out all of
its catering to an independent contractor. The Union was
informed of the decision on the 24th November, 1994.
4. The Union objected in principle to the proposal to
contract out the catering facilities. However, it was
prepared to recommend a voluntary redundancy/early
retirement package to its members provided the terms of
the offer were acceptable. There are 13 catering staff
involved in the dispute. The Union stated that 6 weeks'
pay per year of service plus statutory redundancy would
be acceptable. In addition, the Union claims the
following:-
(a) seven added pension years for those taking
early retirement;
(b) service pay, Sunday allowance and bonuses to be
included in basic pay in the calculation of
redundancy and pension terms;
(c) the College to provide a clerical post for one
of the employees;
(d) 2 catering assistants who wish to be retained
as employees of the College;
(e) that members be given the option of employment
with the private contractor;
(f) that members be given the option of
cleaning/domestic employment elsewhere in the
College;
(g) that written assurances be given to the Union
that no member will be compulsory made
redundant;
(h) that the 1% pay award under clause 2(3) of the
PCW be implemented from 1st April, 1994 and
that it be taken into account when calculating
severance terms;
(i) that equal pay claims, served under the
Anti-Discrimination (Pay) Act, 1974 in respect
of seven female catering assistants involved
with the severance issue be resolved as soon as
possible.
The Union informed the College that it will not be
possible to implement a severance agreement until the
equal pay claims have been settled.
5. The College rejected the Union's claim and stated that
the redundancy package on offer of 2 weeks' pay per year
of service plus statutory entitlements with a ceiling of
18 weeks' pay was the best it could offer. The financial
package has been approved by the Department of Finance as
being the appropriate redundancy compensation formula for
use in this case. The financial package on offer was in
line with public sector norms. The scheme on offer was
accepted by employees in UCD, UCC, UCG and TCD and also
the Colleges' of Education sector - (former employees of
Thomond College and Carysfort College).
6. The Union claims that its Research Department has shown
that the average redundancy settlements during the 1990's
ranged from three to four weeks' pay per year of service
and without any upper limit. It rejected the College's
claim that the offer made was in line with public sector
norms. The Union stated that Bord Failte had completed a
voluntary severance package for its employees in 1995
which provided for six weeks' pay per year of service
(details of the scheme to be submitted to the Court).
7. The dispute was referred to the Conciliation Service of
the Labour Relations Commission. A conciliation
conference was held on the 20th November, 1995 but no
agreement was possible. The Industrial Relations Officer
wrote to the College on the 27th November, 1995 seeking
clarification of the redundancy package on offer and the
possibility of further conciliation to resolve the
dispute.
8. However, no agreement was possible and the dispute was
referred to the Labour Court on the 18th December, 1995
in accordance with Section 26(1) of the Industrial
Relations Act, 1990. The Court investigated the dispute
on the 22nd February, 1996.
UNION'S ARGUMENTS:
3. 1. The redundancy/severance package on offer is not
acceptable and is significantly below the level of
redundancy terms generally on offer.
2. The Union's Research Department indicates that the
average redundancy terms on offer in the 1990s ranged
from 3 to 4 weeks' pay per year of service with no upper
limit.
3. The Union is looking for the provision of seven added
pension years for those opting for early retirement
similar to the public sector schemes of the 1980s. In
1995, Bord Failte, in its redundancy/early retirement
package provided for seven added years for pension and
gratuity purposes.
4. Trinity College, which is also funded by the Higher
Education Authority has given up to ten added years to
employees for pension purposes
5. The Union wants the inclusion of all allowances, such as
service pay, Sunday allowance, and bonuses included in
basic pay when calculating redundancy and pension terms.
6. There should be no compulsory redundancies, and employees
who wish to remain in the employment of the College
should be accommodated
COLLEGE'S ARGUMENTS:
4. 1. The scheme on offer has been accepted by employees in
UCD, UCC, UCG and TCD. Former employees of Thomond
College and Carysfort College also accepted the terms on
offer.
2. The College is faced with a double financial penalty
because, (1) it has not achieved any savings in 1995 and
(2) its grant for 1996 will be reduced for failing to
control costs.
3. The voluntary redundancy/early retirement package on
offer is fair and reasonable and is in line with public
sector norms for the category of worker involved.
4. The Union's claim of 6 weeks' pay per year of service
plus statutory entitlements is unacceptable to the
College, the HEA and the Departments of Education and
Finance.
5. The financial package on offer has been approved by the
Department of Finance, Department of Education and the
Higher Education Authority and cannot be improved upon.
RECOMMENDATION:
The Court has considered the submissions made by the parties
involved in this dispute and has taken into account the arguments
put forward at the hearing. The Union also submitted additional
information on a recent settlement in another employment.
Taking all the circumstances into account the Court recommends that
for the 3 Categories of workers (as set out in the submissions) the
proposals be amended to read:-
4 weeks' pay per year of service including statutory with
a max. of 26 weeks instead of 2 weeks excluding statutory
with a max. of 18 weeks - (Category A & B refer) and in
Category C as above with max. of 78 weeks.
The Court further recommends that every effort be made to re-locate
employees where feasible.
Further local negotiations should be held on the question of added
pension years for those opting for early retirement.
~
Signed on behalf of the Labour Court
Evelyn Owens
24th April, 1996 --------------
L.W./U.S. Chairman
NOTE:
ENQUIRIES CONCERNING THIS RECOMMENDATION SHOULD BE ADDRESSED TO
MR LARRY WISELY, COURT SECRETARY.