FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : C&C WHOLESALE LIMITED (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr McHenry Worker Member: Mr O'Neill |
1. Redundancy terms for staff at Company depot in Clontarf
BACKGROUND:
2. The Company was formed in 1995, following the merger of Dwans and other elements of C & C. It is a stand-alone company within the C & C Group. The Company, which handles the licensed trade sector, has operated from 2 depots since 1995, one in Clontarf and one in Cookstown Industrial Estate. The Company intends moving the entire operation from Clontarf to a new site in Nangor Road, as soon as the site there is complete. (The workers in Cookstown have already agreed to move to Nangor Road.) Seven of the eight workers in Clontarf have opted to take voluntary redundancy rather than a compensation package for moving. The dispute concerns the amount of the redundancy payment. The service of the 7 workers ranges from a temporary worker with 2 years to an administrator with 29 years. The administrator is close to retirement age, and the Company has offered to deal seperately with this person. The Union is seeking compensation similar to what was agreed with staff at Grants/Showerings, who are part of the C & C Group. This would include 6 weeks' pay per year of service, double statutory entitlement and no ceiling (full details supplied to the Court). The Company is offering 80% of 4 weeks' pay per year of service, claiming that 4 weeks is the established formula, inclusive of statutory.
The dispute was referred to the Labour Relations Commission and a conciliation conference took place on the 17th of January and the 9th of February, 2000. As the parties did not reach agreement, the dispute was referred to the Labour Court on the 18th of February, 2000. A Labour Court hearing took place on the 10th of March, 2000.
UNION'S ARGUMENTS:
3. 1. The Union does not accept that 4 weeks' pay per year of service is the established formula for redundancy. It should be 6 weeks as per Grants/Showerings, which was for relocation to Nangor Road.
2. The main reason that the workers are opting for redundancy is because of the added distance involved (11 miles) in travelling to Nangor Road. Between the additional travel time and added expenses each day, it would not be worth their while to relocate.
3. The Company will make money from the sale of the site in Clontarf. Four of the workers who are involved in transport will have them jobs contracted-out. Many of the workers have given long and loyal service to the Company, and should be properly rewarded.
COMPANY'S ARGUMENTS:
4. 1. This is not a case of forced redundancy. The workers are giving up their jobs voluntarily. The Company wants the workers to stay on, as it will be difficult and expensive to replace them. The Company has committed to paying relocation to any person who transfers.
2. The redundancy package of 4 years' pay per years of service has been established for 16 years. With the long years service of most of the workers, they will be well compensated. The situation with Grants/Showerings was different, and the Company cannot afford to pay more than its present offer.
3. The additional distance involved in commuting is not great and, as such, the Company does not believe that a redundancy situation exists. One of the workers will actually be closer to Nangor Road than to Clontarf. Most of the workers will be able to get new jobs quite easily.
RECOMMENDATION:
Having regard to the circumstances of this case, the Court recommends that the Company offers, and that the Union accepts, a severence package based on 5 weeks' pay per year of service, inclusive of whatever statutory entitlement exists in each case.
A maximum payment of £50,000 should apply to each individual, plus 25% of the amount in excess of that amount for such an individual.
In the case of the individual approaching retirement referred to in the course of the hearing, a special arrangement, which takes account of that worker's circumstances should be negotiated between the parties.
Other elements of the Company's offer should be accepted.
Signed on behalf of the Labour Court
Kevin Duffy
20th March, 2000______________________
CON/CCDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.