FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : THE OLDE GATE BAKERY/ORDER OF MALTA - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Carberry Worker Member: Mr O'Neill |
1. Severance package
BACKGROUND:
2. The Olde Gate Bakery is a subsidiary company of the Order of Malta. It operated on behalf of the Order, producing food products for local suppliers and providing training for persons with learning disabilities. The case involves 7 workers who have been with the Company for varying lengths of service, ranging from 12 to 22 years. The Company closed on the 21st of September, 2001. The workers received statutory redundancy but the Union is seeking an enhanced payment.
The dispute was referred to the Labour Relations Commission and a conciliation conference took place. At the conference, the Union's claim was for 2 weeks' pay per year of service, plus statutory entitlements. The Company claimed that it did not have the money to pay anything beyond statutory pay. As the parties did not reach agreement, the dispute was referred to the Labour Court on the 26th of September, 2001, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 1st of March, 2002, in Dundalk, the earliest date suitable to the parties.
UNION'S ARGUMENTS:
3. 1. This was a case of compulsory redundancy. Some of the workers have been with the Company for as long as 22 years and all have given loyal service.
2. The workers were on low salaries and had no pension rights. The terms of the Programme for Prosperity and Fairness (PPF) were not applied.
3. The Union believes that the Company had money, including €634,869 from the North Eastern Health Board (NEHB), but used it to pay a number of creditors and to clear debts.
COMPANY'S ARGUMENTS:
4. 1. The Company is sympathetic to the workers' situation but it does not have the money to pay anything beyond statutory redundancy. Indeed, the Company had to borrow the money needed to pay statutory.
2. The Company made some money from retail sales but it did not pay for itself.
3. All of the money received from the NEHB was for the Order of Malta.
RECOMMENDATION:
The Court has considered the submissions of the parties. While the Court notes the financial difficulties of the Company it also has regard to the long and loyal service of many of the employees. The Court is of the view that more effort should have been made to enhance their severance pay by an ex-gratia payment. Therefore, the Court recommends concession of the Union's claim, i.e. the payment of two weeks' pay per year of service for each claimant in addition to the statutory redundancy payment already made.
Signed on behalf of the Labour Court
Caroline Jenkinson
21st March, 2002______________________
CON/MBDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.