Labour Court Database __________________________________________________________________________________ File Number: CD9690 Case Number: LCR15113 Section / Act: S26(1) Parties: COLOUR REPRO LIMITED (Represented by IBEC) - and - GRAPHICAL PAPER & MEDIA UNION (G.P.M.U. |
Proposed redundancies.
Recommendation:
The Court has given careful consideration to all the points made
by the parties in their written and oral submissions and has also
taken into account the present position of the Company.
In all the circumstances the Court recommends that the Company
increase its offer of the 29th of February, 1996 to £700 per year
of service and minimum notice. The time frame to be £400 per year
of service and minimum notice with immediate effect with remainder
being paid over a 5 month period by a monthly post dated cheque or
standing order. The Court recommends that the Union accept these
amended proposals as being the best attainable in the
circumstances.
Division: Mr McGrath Mr Keogh Mr Rorke
Text of Document__________________________________________________________________
CD9690 RECOMMENDATION NO. LCR15113
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
PARTIES:
COLOUR REPRO LIMITED
AND
GRAPHICAL PAPER & MEDIA UNION (G.P.M.U.)
SUBJECT:
1. Proposed redundancies.
BACKGROUND:
2. 1. The Company is involved in the provision of pre-print
(colour separation) for colour printing. Its main customers are the n
magazines. In 1995, the Company suffered significant
losses. The situation was further exacerbated when the
Company lost a contract which it had with the Irish
Times newspaper. It also lost business when the Irish
Press closed down. Its business from the Irish
Independent newspaper reduced by more than half.
As a result the Company has proposed six redundancies as
follows:
3 in Planning
2 in Computer
1 in Scanning
The redundancies are necessary for the survival of the
Company. The Company is offering statutory redundancy
terms only.
2. The Union claims that the redundancies are unnecessary
but that should they occur the payment should be 3
weeks' pay per year of service plus statutory and
minimum notice pay.
3. As no agreement was possible between the parties the
dispute was referred to the Conciliation Service of the
Labour Relations Commission. A conciliation conference
was held on the 23rd February, 1996 but no agreement was
possible.
On the 29th February, 1996, the Company proposed that if
they secured five redundancies in selected areas, the
severance terms would be £600.00 per year of service and
minimum notice paid at average gross earnings. A time
frame for this payment would be £300.00 per year of
service and minimum notice payment, with immediate
effect with the remainder being paid in six monthly
instalments.
4. The dispute was referred to the Labour Court on the 27th
February, 1996 under Section 26(1) of the Industrial
Relations Act, 1990. The Court investigated the dispute
on the 13th March, 1996.
UNION'S ARGUMENTS:
3. 1. The redundancies are not necessary. The problem can be
addressed by job sharing/job rotation.
2. The employees have assisted the Company by working
overtime at reduced rates and foregoing the 2nd and 3rd
phases of the PCW.
3. The Union cannot accept redundancies based on statutory
terms. The payment should be 3 weeks' pay per year of
service plus statutory entitlements.
4. The commitment and expertise of the employees has
enabled the Company to trade successfully over the years
and this should be recognised by management.
COMPANY'S ARGUMENTS:
4. 1. The Company cannot survive without the necessary
restructuring and the implementation of major changes.
2. The Company's accountants have stated that it must "down
size" to survive.
3. The Company has no financial resources to enable it to
pay above the statutory entitlements.
4. The Company's bank has refused to fund any enhanced
redundancy terms.
RECOMMENDATION:
The Court has given careful consideration to all the points made
by the parties in their written and oral submissions and has also
taken into account the present position of the Company.
In all the circumstances the Court recommends that the Company
increase its offer of the 29th of February, 1996 to £700 per year
of service and minimum notice. The time frame to be £400 per year
of service and minimum notice with immediate effect with remainder
being paid over a 5 month period by a monthly post dated cheque or
standing order. The Court recommends that the Union accept these
amended proposals as being the best attainable in the
circumstances.
~
Signed on behalf of the Labour Court
21st March, 1996 Evelyn Owens
L.W./S.G. ________________
Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Larry Wisely, Court Secretary.