FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : FARAH LIMITED (REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Employer Member: Worker Member: |
1. Redundancy terms.
BACKGROUND:
2. Farah Exports (Ireland) is a multinational clothing Company, with 3 plants in the west of Ireland, at Galway, Ballyhaunis and Kiltimagh, employing approximately 250 workers. Arising from losses incurred in recent years, the Company is to transfer production from its Ballyhaunis plant, which employs about 90, to its factory in Kiltimagh. Jobs would be available for all staff who wished to transfer but the Company would not be in a position to offer any more than statutory entitlements to those opting for redundancy. The matter was the subject of a conciliation conference under the auspices of the Labour Relations Commission, at which a number of issues, including the provision of transport and the guaranteeing of earning levels were discussed. Agreement was reached on these issues, but the matter of redundancy terms was not resolved.
At a subsequent conciliation conference, agreement was reached on the matter of compensation payable to those transferring to Kiltimagh, based on years of service. The matter of redundancy payments for those not transferring remained outstanding. The dispute was referred to the Labour Court, on the 2nd of July, 1996, in accordance with Section 26(1) Industrial Relations Act, 1990. The Court, carried out its investigation on the 27th of August, 1996. The Court issued its Recommendation by letter to the parties, also on the 27th of August, 1996.
UNION'S ARGUMENTS:
3. 1. The claim for enhanced redundancy terms, i.e., 4 weeks' pay per year of service, plus statutory should be upheld, as the redundancies are compulsory and the workers concerned have substantial service.
2. Alternative employment opportunities in the area are very limited and the age profile of some of the workers involved is such that they may never secure meaningful employment for the remainder of their working lives.
3. All employees have made considerable sacrifices to assist the Company during a difficult period, and have lost out on wage increases due under national wage agreements. They have also endured losses associated with short-term working, which was precipitated by the Company's decision to send production to Morocco.
4. The Company's financial position has stabilised and profits are actually being made in the Company's Australian operation.
COMPANY'S ARGUMENTS:
4. 1. Given the costs involved to the Company, and its precarious financial position, the Company is not willing to pay workers who are unwilling to transfer above their statutory entitlements in view of the fact that jobs are available for them all.
2. The Company is operating in a difficult sector and is financially compromised. Given these facts, and also that the case is a matter regarding relocation rather than redundancy, the Company's position is reasonable. The distance involved between Ballyhaunis and Kiltimagh amounts to only about 12 miles. Additionally, the Company is prepared to provide a subsidised bus service.
RECOMMENDATION:
The Court, having considered the written and oral submissions made by the parties, makes the following recommendation:-
(1) Redundancy terms for Employees not transferring to Kiltimagh to be two times the statutory entitlement
(2) Employees who have not opted to transfer to be given a chance to do so now if their circumstances have changed.
Signed on behalf of the Labour Court
Finbarr Flood
30th September, 1996______________________
M.K./S.G.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Michael Keegan, Court Secretary.