FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : PICKERINGS LIFTS LIMITED - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Flood Employer Member: Mr Keogh Worker Member: Mr O'Neill |
1. Redundancy.
BACKGROUND:
2. The claimant commenced employment as a driver in 1990. He was declared redundant on the 8th December, 2000. The Company paid the worker his statutory redundancy entitlements. The Union submitted a claim for 4 weeks' pay per year of service. The Company rejected the claim. The Union sought to refer the dispute to the Labour Relations Commission but the Company objected to such a referral. On the 24th January, 2001 the Union referred the dispute to the Labour Court under Section 20(1) of the Industrial Relations Act, 1969 and agreed to be bound by the Court's recommendation. A Court hearing was held in Navan on the 17th April, 2001.
UNION'S ARGUMENTS:
3. 1. The Union's claim is reasonable, given that in 1999/2000, 60% of redundancy settlements provided for 3-6 weeks' pay per year of service, while in 1998, it was 3-5 weeks and in 1997, 3-4 weeks. The bulk of the redundancies were in the engineering industry which provided for settlements averaging 4-5 weeks.
2. The Labour Court, in various recommendations, has supported similar severance terms to those being claimed by the Union on behalf of the worker.
3. The claimant has given loyal and committed service to the Company for over ten years. He is over 63 years of age and is very unlikely to secure further employment. The CIF pension scheme, supposedly in operation in the Company for many years, has only operated in respect of the worker since 1998.
COMPANY'S ARGUMENTS:
4. 1. Since mid-1998 the Company has undergone a very significant restructuring process which was necessary to ensure it's continued survival. During this process other workers were also made redundant and their payments were the same as the claimant's.
2. The redundancy payment made to the worker is in accordance with statutory regulations. The Company is not in a financial position to offer enhanced redundancy terms.
RECOMMENDATION:
The Court having considered the written and oral submissions recommends that the employer pay the claimant severance payments of 3 weeks' pay per year of service, inclusive of statutory payment.
The Court also recommends that the Company examine its obligations to the claimant in relation to the C.I.F. pension scheme prior to 1998, given that the Company was a member of the C.I.F. and contributions were not optional.
Signed on behalf of the Labour Court
Finbarr Flood
24th April, 2001______________________
T.O'D./B.R.Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Tom O'Dea, Court Secretary.