FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : UNILEVER BESTFOODS - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Carberry Worker Member: Mr O'Neill |
1. Early retirement / Redundancy.
BACKGROUND:
2. The present Company was formed as a result of the amalgamation of two companies. It employs approximately 1,200 staff.
In July, 2001 agreement was reached on new salary scales for the Company. Due to restructuring, the Company is now seeking approximately 9 volunteers from amongst the Sales staff to opt for a redundancy/early retirement package.
The dispute before the Court concerns a claim by the Union on behalf of the staff concerned that the redundancy/early retirement package be calculated using the new salary scales agreed in July, 2001. The Company rejects the claim, stating that the new salary scales are only for staff remaining in the Company who are affected by the changes which have taken place.
The dispute was the subject of a conciliation conference under the auspices of the Labour Relations Commission held on the 23rd of July, 2001. As agreement was not reached, the dispute was referred to the Labour Court on the 1st of August, 2001 under Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 23rd August, 2001.
UNIONS ARGUMENTS:
3. 1. The Company's approach in this matter is not in line with past practices. Previously in redundancy situations, in other parts of the Company, weekly pay was maximised to the benefit of the staff concerned.
2. The new salary scales should be used in calculating the redundancy/early retirement package in order to maximise the pension entitlements of the staff concerned.
COMPANY'S ARGUMENTS:
4. 1. The new salary scales are for people remaining in the Company who are taking on extra work due to the changes which have taken place. These changes do
not apply to those opting for redundancy/early retirement.
2. The package on offer is a good one and won't be changed.
3. The application of the new salary scales to the redundancy/early retirement package for this group would set a precedent for negotiations with other groups in the future.
RECOMMENDATION:
Having considered the submissions of the parties the Court can see no basis on which it could recommend concession of the Union's claim as presented.
The Court recommends that the Company's package be again put to the affected employees on a voluntary basis.
Signed on behalf of the Labour Court
Kevin Duffy
5th September, 2001______________________
GB/BRDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Gerardine Buckley, Court Secretary.