FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : M AND Q PLASTICS LIMITED (REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Employer Member: Worker Member: |
1. Dispute concerning the terms of redundancy.
BACKGROUND:
2. The Company manufactures plastic moulds and tubing for the automotive industry and employs 44 workers. The Company and the Union have reached agreement on 16 jobs to be declared redundant. The parties cannot agree on the redundancy terms to be applied. The Union is claiming 3 weeks' per year of service plus statutory entitlements. The Company has offered to pay the statutory terms in two instalments. The Union rejected the Company's offer. The dispute was referred to the Labour Relations Commission and a conciliation conference was held on the 29th May, 1996. Agreement was not possible and the dispute was referred to the Labour Court by the Labour Relations Commission on the 29th May, 1996. A Court hearing was held in Limerick on the 9th October, 1996.
UNION'S ARGUMENTS:
3. 1. The Company declared that its financial position is precarious yet it declined to make its accounts available directly to the Union. The Union is sceptical of the extent of the Company's difficulties and believes that it is in a position to improve its offer.
2. The Company's offer of statutory redundancy on a phased basis to workers who have given long and efficient service is not acceptable to the Union. There has been no mention of pay in lieu of notice to which these workers are entitled.
3. In a previous redundancy situation in 1993 the Company agreed a severance package amounting to 3 weeks' per year of service. The Union is seeking a similar package in the current redundancy situation.
COMPANY'S ARGUMENTS:
4. 1. The Company's financial situation is precarious (details supplied to the Court). It has lost a major contract with an important customer and management sees little hope of an improvement in the short term trading position.
2. It is essential that the Company implement the 16 redundancies in order to remain viable and competitive and to secure the remaining jobs in the employment.
3. In view of its very serious financial position and current trading difficulties, the Company cannot afford to pay redundancy compensation in excess of the statutory entitlements.
RECOMMENDATION:
The Court has considered all of the issues raised by the parties in their oral and written submissions and the subsequent information made available.
The Court notes the efforts being made to improve relations and communications between the parties particularly given the need to ensure there is a climate of goodwill existing if the survival of the Company and the security of employment is to be assured.
The Court in the light of all of the circumstances recommends that the employees accept the payment of statutory redundancy in respect of those employees being made redundant.
The Court does not recommend that this payment be phased.
Signed on behalf of the Labour Court
Tom McGrath
12th December, 1996______________________
T.O'D./S.G.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Tom O'Dea, Court Secretary.