FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : ASCOM TIMEPLEX (REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Owens Employer Member: Mr Keogh Worker Member: Mr Rorke |
1. Redundancy.
BACKGROUND:
2. The Company manufactures electronic components and employs 61 workers. Arising out of a decision of the U.S. parent, the Company announced its intention to close the plant on 1st July, 1997. Redundancies commence on the 5th August. The majority of workers will have left by the end of August. The Company has offered a redundancy package amounting to 3 week's pay per year of service plus statutory entitlements subject to a ceiling of one year's earnings. The Union is claiming 6 week's per year of service plus statutory entitlements and the removal of the ceiling. Management rejected the claim. The dispute was referred to the Labour Relations Commission and a conciliation conference was held on the 8th July, 1997. Agreement was not possible and the dispute was referred to the Labour Court by the Labour Relations Commission on the 8th July 1997. A Court hearing was held on the 15th July, 1997. A letter recommendation was issued on the 16th July, 1997.
UNION'S ARGUMENTS:
3. 1. The closure of the plant does not arise through any deficiency or shortcomings on the part of the workforce. They have given significant co-operation to the profitability of the Irish operation. The plant had a high productivity record and industrial relations were excellent.
2. In order to facilitate the transfer of production to the U.S., workers from that location will be temporarily assigned to the Irish plant for training/familiarisation. The workers being made redundant will be expected to assist and co-operate in this process.
3. Against this background the Company's offer is extremely ungenerous and is significantly lower than recent settlements agreed in negotiations or recommended by the Court in a range of trans-national employments (details to the Court). Unlike these companies Timeplex is profitable in Ireland and the closure decision was taken for strategic/corporate reasons. The Company has refused to negotiate on the package to be provided.
COMPANY'S ARGUMENTS:
4. 1. Ascom Timeplex has sustained significant losses over the past four years and substantial numbers of workers have been made redundant in other countries during this time. Management hoped that the Irish operation could recover and avoid a similar fate. Unfortunately this has not happened and the Company has been forced to close the plant.
2. The Company has offered three week's pay per year of service plus statutory entitlements. In addition VHI cover will be continued until the end of March, 1998 and Death in Service benefit will continue until July, 1998. The Company has engaged the services of an Outplacement Service to help employees find new work. The Company feels that this package is fair and reasonable given the circumstances.
RECOMMENDATION:
Having considered the submissions from the parties the Court recommends that the Company's offer be amended to 4 week's pay per year of service without cap. The other parts of the offer to remain.
The Court so recommends.
Signed on behalf of the Labour Court
Evelyn Owens
22nd July, 1997______________________
T.O'D./S.G.Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Tom O'Dea, Court Secretary.