FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : CARTON BROTHERS (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Keogh Worker Member: Mr O'Neill |
1. Redundancies.
BACKGROUND:
2. The Company operates a poultry processing plant at Shercock, Co. Cavan.
The dispute before the Court concerns a claim by the Union on behalf of 260 staff regarding terms of a redundancy package at the plant.
In February, 1999, the Company proposed to introduce new machinery to help reduce the high cost of production and to remain competitive. This proposal would result in 24 redundancies of full time and part-time staff.
The terms of redundancy proposed by the Company are 5 weeks' pay per year of service plus statutory entitlement to full time staff and statutory entitlement to part-time staff based on their current rate of pay.
The Union is seeking 8 weeks' pay per year of service plus statutory entitlement for full time staff and recognition for previous full time service for part-time staff when calculating their statutory entitlement.
The dispute was the subject of a conciliation conference under the auspices of the Labour Relations Commission held on the 28th of April, 1999, in Cavan. As agreement was not reached, the dispute was referred to the Labour Court in accordance with Section 26 (1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 3rd of June, 1999.
UNION'S ARGUMENTS:
1. Other companies have paid redundancy lump sums in excess of 5 weeks' pay per year of service to staff and have recognised previous full time service of part-time employees.
2. These redundancies will cause widespread disruption to the remaining staff. This is the second rationalisation programme within the Company in the last two years. The Company will save approximately £300,000 as a result of this programme. Staff should receive a share in these savings.
3. The Union is seeking 8 weeks' pay per year of service plus statutory entitlement for full time staff and recognition for previous full time service for part-time staff when calculating their statutory entitlement. This is a reasonable request.
COMPANY'S ARGUMENTS:
1. The Company is just breaking even and cannot be compared to profit making companies. Assets had to be sold to finance the new equipment.
2. Savings to the Company resulting from the redundancies will be used to maintain competitiveness. There will be no profit to the Company.
3. The proposed redundancy package offered to staff is fair and reasonable.
RECOMMENDATION:
Having considered the submissions of the parties the Court recommends as follows in relation to each of the Unions claims:
1.Redundancy Payments
Having regard to the recent origin of Recommendation LCR 15576, and to the fact that there have been no material changes in the circumstances of the employment since it was issued, the Court does not recommend any change in the redundancy terms proposed by that Recommendation.
2.Part-Time Employees
The Court notes in Recommendation LCR 15576 provision made for the payment of compensation to employees whose attendance pattern was changed from full time to part-time. In these circumstances, and in the absence of any previous practice of calculating redundancy payments by reference to past full time working, the Court does not recommend concession of the claim.
3.Share of Savings Accruing From Rationalisation
It is the Company's case that any savings which result from the rationalisation proposed will be used to maintain competitiveness rather than improve profitability. In that regard it is noted that the Company is prepared to disclose relevant financial information to the Union's professional adviser on a confidential basis. In these circumstances the Court does not consider that a sufficient case has been made out on which it could recommend concession of the Union's claim.
Signed on behalf of the Labour Court
Kevin Duffy
21st June, 1999______________________
GB/BCDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Gerardine Buckley, Court Secretary.