FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : GREENCORE GROUP PLC - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Employer Member: Worker Member: |
1. Issues arising from the sale of quarries.
BACKGROUND:
2. The dispute concerns the proposal by the Company to sell its Glenstone quarries operations to Roadstone Provinces Limited (Roadstone), part of Cement Roadstone Holdings (CRH). The proposed sale would affect 31 permanent workers and a number of temporary employees engaged in the Company's quarries at Ballybeg, Ballyellen and Killough.
The Union would prefer that the quarries remain with the ownership of Greencore. If the sale goes ahead, the Union is seeking that (a) all existing terms and conditions of employment (including pension and redundancy entitlements) be preserved for workers transferred to Roadstone or (b) workers be redeployed within Greencore or avail of a voluntary severance/early retirement package.
The dispute was referred to the Labour Relations Commission and a conciliation conference took place on 3rd September, 1996. As the parties did not reach agreement the dispute was referred to the Labour Court on 4th September, 1996, in accordance with Section 26(1), Industrial Relations Act, 1990. A Labour Court hearing took place on 21st October, 1996.
UNION'S ARGUMENTS:
3. 1. The Union is concerned for the future of the workers by the proposed transfer. In terms of job security there is the possibility of dismissal for economic, technical or organisational reasons. Roadstone and CRH frequently reduce the level of directly employed workers in favour of contractors which does not bode well for the Greencore workers. While the new employer is required to continue observing the terms of the collective agreements, the stipulation is qualified by the clause "until they expire or are replaced". In certain circumstances, the new owners could revoke the existing agreement.
2. A number of the workers involved are in the higher end of the age bracket and have given long service to the Company. Some of these workers would prefer to accept the Company's severance package, which has been available to employees for many years, rather than transfer in uncertain circumstances.
COMPANY'S ARGUMENTS:
4. 1. The Company is mainly involved in the preparation and supply of foods. Quarrying and its related activities are not core activities, and have not provided opportunity for development over the years. It is in the interest of the Company to sell this side of the business to Roadstone.
2. All present terms and conditions in the Company are fully accepted by Roadstone and will be implemented for the workers concerned in the transfer. Each worker will receive a letter confirming that conditions will continue. Any future changes will be negotiated between Roadstone and the Union. No redundancies will arise although the Company has arranged for up to 8 workers to take voluntary severance at full redundancy terms. The Company has met its obligations under the Transfer of Undertaking Regulations (1980).
RECOMMENDATION:
The Court, having considered the written and oral presentations, is of the view that the undertakings given on terms and conditions more than satisfied the requirement of the Act.
The Court would recommend that the representatives of the employees meet with the new company management as soon as possible.
In relation to the 8 voluntary severance terms available to employees over 60 years of age, the Court further recommends that if these are not taken up by employees aged over 60, they should be offered down the line in descending age up to the maximum of 8 voluntary parting packages.
Signed on behalf of the Labour Court
Finbarr Flood
18th November, 1996______________________
C.O'N./S.G.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.