FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : WOODFAB TIMBER LTD (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Flood Employer Member: Mr Keogh Worker Member: Mr Rorke |
1. Hearing Arising From LCR15377.
BACKGROUND:
2. The Company is located at Aughrim, Co. Wicklow. It currently employs 75 people. In April, 1999, Management announced that they would be investing in new and more modern equipment in order to maintain the Company's competitive position. This plan would result in 19 redundancies.
The Company offered statutory redundancy on a voluntary basis. The Union is seeking an acceptable redundancy package on a voluntary basis for its members.
The dispute could not be resolved at local level and was referred to the Labour Court under Section 26 (1) of the Industrial Relations Act, 1990 as recommended in LCR 15377. A hearing took place on the 2nd of July, 1999, the earliest date suitable to the parties.
UNION'S ARGUMENTS:
1. It will be difficult for the workers concerned to find similar work as they have worked all their lives in the Timber Industry.
2. There is neither a Sick Pay Scheme nor a Pension Scheme in the Company.
3. The Union is seeking a decent redundancy package for its members. The statutory redundancy is not adequate.
COMPANY'S ARGUMENTS:
1. In order to maintain competitiveness it was necessary for the Company to invest in new equipment which will result in the redundancies.
2. The Union was kept informed on a weekly basis regarding the proposed redundancies.
3. The Company is a family run business and cannot afford to pay the workers concerned any payment in excess of the statutory redundancy.
RECOMMENDATION:
The reality is that the redundancies proposed will in most cases be compulsory rather than voluntary. These redundancies are not as a result of business downturn but part of a capital reinvestment programme.
The Court, while accepting that this Company is not in a profit situation at present notes that projections are for improvements as a result of this capital investment programme.
The Court believes that the project for future development of the plant should have included some financial provision for a payment to those being made redundant, given the length of service of these employees.
Having considered all the information supplied, the Court recommends that the redundancy payments should be statutory redundancy plus £300 per year of service.
Signed on behalf of the Labour Court
Finbarr Flood
24th August, 1999.______________________
GB/BCChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Gerardine Buckley, Court Secretary.