FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : TARA MINES LIMITED (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - GROUP OF UNIONS DIVISION : Chairman: Mr Flood Employer Member: Mr Keogh Worker Member: Mr. Somers |
1. Hearing arising from LCR17003.
BACKGROUND:
2. The dispute concerns the Company's decision to lay off 650 workers (beginning on the 17th of November, 2000,) without a timescale for resumption of operations, due to the fall in the price of zinc. The full background to the dispute is contained in LCR17003. In it, the Court recommended that a Company review would take place in mid-January, 2002, in regard to a plan for a re-commencement date of work. If the Company's plan as proposed was not proceeding as outlined, then either party could request a definitive recommendation. Following a meeting on the 24th of January, 2002, the Group of Unions wrote to the Court seeking such a recommendation. A Labour Court hearing took place on the 31st of January, 2002.
UNIONS' ARGUMENTS:
3. 1. The employment status of the workers has not altered since the original hearing on the 21st of November, 2001. The Company still has no definite date for re-commencement.
2. Outokumpu has since proposed a number of issues which must be brought to a satisfactory conclusion before a decision to re-start the mine is taken. This includes the price of zinc, a 3 month investment period, financing of capital investment, a feasibility study and commitment from all parties.
3. The price of zinc has decreased since the 21st of November, 2001, whilst the excess zinc stocks have increased by a further 100,000 tonnes.
COMPANY'S ARGUMENTS:
4. 1. The zinc metal market has remained weak and is expected to continue to be uncertain for the first half of 2002. However, the zinc concentrate market is moving into deficit and this is expected to result in better commercial terms for mining companies.
2. The Company review highlights a significant need to improve the mines' technical condition. This would involve investment of euro 10 million out of a total capital investment of euro 70 million to euro 80 million.
3. The Company acknowledges the co-operation of all the employees and has agreed to help them financially by way of continued VHI premiums and a pension contribution holiday until the end of March, 2002. The Company is also putting together a financial package in the form of an interest-free loan.
RECOMMENDATION:
The Court was briefed on the Company position following its review of the current state of business, and given an outline of its intentions for the future.
While the international scene is still difficult, the Management has indicated that a Board decision will be taken on the 15th of March, 2002, on re-opening proposals. Management is hopeful that this will lead to resumption of full production from the mine in June,2002.
The Court, in making a recommendation at this stage, is influenced by the Management's confidence that this plant has a future, subject to a number of issues being brought to a satisfactory conclusion.
However, the Court is also conscious of the hardship being endured by the workers, and its previous statement that " the welfare of the employees and their families cannot remain on hold indefinitely, and that some mechanism must be put in place to address their concerns".
Management has indicated its willingness to address a number of welfare issues, including an interest-free loan.
The Union has raised the issue of a "Subsistence Payment".
Having considered all of the issues involved, the Court recommends that the parties enter into discussions immediately to try to reach an accommodation suitable to both parties to bridge the period to re-opening.
Signed on behalf of the Labour Court
Finbarr Flood
11th February, 2002______________________
CO'N/MBChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.