FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : MEDISIZE DONEGAL HEALTHCARE LIMITED (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - AMICUS/AEEU DIVISION : Chairman: Mr Duffy Employer Member: Mr Keogh Worker Member: Ms Ni Mhurchu |
1. Re-hearing arising from LCR16737.
BACKGROUND:
2. In February, 2001, the Court issued LCR 16737 which dealt with redundancy terms for 2 toolmakers/workers. The Union was seeking 5 weeks' pay per year of service plus statutory. The Company claimed an inability to pay due to its financial situation. The Court recommended 3 weeks' pay plus statutory, with the parties to meet 12 months later to review the Company's financial situation.
In May, 2002, following a meeting with the Company, the Union referred the case back to the Court seeking the balance of the payment. A Labour Court hearing took place on the 28th of March, 2003, in Donegal, the earliest date suitable to the parties.
UNION'S ARGUMENTS:
3. 1. The Company has accepted that 5 weeks' pay per year plus statutory was paid in previous redundancy situations. The same should apply in this case.
2. Following the previous Court hearing, the Company employed further toolmakers but did not offer the 2 workers concerned re-employment.
3. The Company is now very successful, following a buy out by a multi-national company. This case concerns only two workers and the Company can well afford to pay them the balance of the redundancy payment.
COMPANY'S ARGUMENTS:
4. 1. The Company is involved in an increasingly competitive industry. While in the past the Company could afford to pay 5 weeks' pay per year of service this is no longer the case.
2. Since the Labour Court hearing in February, 2001, 11 workers have reached agreement with the Company for 3 weeks' pay per year of service plus statutory.
3. It is much easier today for people to find alternative employment in redundancy situations.
RECOMMENDATION:
The only issue before the Court concerns the outstanding element of the redundancy payments recommended in LCR 16737. The Court is satisfied that the circumstances of the Company have improved to a sufficient degree so as to allow the residual amount to be paid.
For the avoidance of doubt, the Court wishes to make it clear that this recommendation relates only to the two redundancies which occurred in 2001.
Signed on behalf of the Labour Court
Kevin Duffy
7th April, 2003.______________________
CON/MB.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.