Labour Court Database __________________________________________________________________________________ File Number: CD963 Case Number: LCR15071 Section / Act: S26(1) Parties: HALLMARK CARDS (Represented by THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION;GRAPHICAL, PAPER AND MEDIA UNION;IRISH PRINT UNION;AMALGAMATED TRANSPORT AND GENERAL WORKERS UNION;AMALGAMATED ENGINEERING AND ELECTRICAL UNION;TECHNICAL ENGINEERING AND ELECTRIC |
Redundancy terms.
Recommendation:
The Court, having considered the oral and written submissions of
the parties, makes the following recommendations:-
1. The severance terms be increased to statutory terms plus pay
in lieu of notice, plus 3 1/2 weeks for each year of service.
2. An overall limit of 104 weeks pay to apply.
The other aspects of the severance package to be as agreed between
the parties.
Division: Mr McGrath Mr Pierce
Text of Document__________________________________________________________________
AL UNION Worker: Mr. Rorke Body:
CD963 RECOMMENDATION NO. LCR15071
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
HALLMARK CARDS
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
AND
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
GRAPHICAL, PAPER AND MEDIA UNION
IRISH PRINT UNION
AMALGAMATED TRANSPORT AND GENERAL WORKERS UNION
AMALGAMATED ENGINEERING AND ELECTRICAL UNION
TECHNICAL ENGINEERING AND ELECTRICAL UNION
SUBJECT:
1. Redundancy terms.
BACKGROUND:
2. The Company, which was set up in 1959, is a subsidiary of
Hallmark Cards Incorporated, U.S.A. and employs 215 workers.
Following a downturn in business the Company implemented
voluntary redundancies on a yearly basis since 1992. A
review was carried out in June, 1995 and in November, 1995
management announced its decision to sell the Company to the
WACE Group, one of the largest greeting card manufacturers in
Britain.
Negotiations commenced between the Company and the Unions
concerned regarding a redundancy package for 46 workers. The
Company proposed the following:-
Statutory terms plus pay in lieu of notice - the limit of
£300 per week to be removed in calculating this figure.
Two and a half weeks pay for each year of service.
An overall limit of 80 weeks pay to apply.
Payment into the pension fund of £100 for each year of
service for each affected employee over 55 years of age.
Agreement was not reached and a conciliation conference was
held under the auspices of the Labour Relations Commission on
18th December, 1995. Again, agreement was not reached on all
of the issues and the Unions requested that the dispute be
referred to the Labour Court in accordance with Section 26(1)
of the Industrial Relations Act, 1990. A Labour Court
hearing took place on 15th January, 1996.
UNIONS' ARGUMENTS:
3.1 The Company's proposal of two and a half weeks pay for each
year of service is not acceptable. Four weeks pay is not
unusual in other companies and the Company can finance this
expenditure from the substantial proceeds of the sale.
2 It is vital that the cap proposed by the Company of 80 weeks
be removed, as 18-20 of the 46 workers concerned would
otherwise lose a substantial amount of money. The workers
have given dedicated service over an average of 29 years and
are of an age that their chances of future employment are
extremely remote.
3 The majority of the redundancies will be compulsory as most
of the workers concerned hold supervisory, managerial,
technical and craft positions which will not exist under the
new ownership. Redeployment for some to lower grade jobs is
not acceptable.
COMPANY'S ARGUMENTS:
4.1 The Company has experienced a severe downturn in business
since 1990 due to a fall off in sales and a reduction in
process content. Operating losses in 1995 were substantial.
Despite voluntary redundancies since 1992 the levels of work
have not been sufficient to sustain the number of workers
currently employed.
2 The claim put forward by the Trade Unions is unrealistic
considering that the majority of redundancies will be on a
voluntary basis. In previous years more volunteers applied
than were required.
3 The Company has enhanced the package considerably over and
above the original voluntary package, as it is agreed that
some of the redundancies will be compulsory. There may also
be opportunities for some workers to transfer or redeploy to
lower grade jobs.
4 It is imperative to reduce staffing levels and to rationalise
working practices and conditions to ensure the future
viability of the Company for the remaining employees.
RECOMMENDATION:
The Court, having considered the oral and written submissions of
the parties, makes the following recommendations:-
1. The severance terms be increased to statutory terms plus pay
in lieu of notice, plus 3 1/2 weeks for each year of service.
2. An overall limit of 104 weeks pay to apply.
The other aspects of the severance package to be as agreed between
the parties.
~
Signed on behalf of the Labour Court
26th January, 1996 Tom McGrath
D.G./A.K. ---------------
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Ms. Dympna Greene, Court Secretary.