FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : FRANCISCAN AGRICULTURAL & HORTICULTURAL COLLEGE (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - MANUFACTURING, SCIENCE, FINANCE DIVISION : Chairman: Mr Duffy Employer Member: Mr Doherty Worker Member: Mr O'Neill |
1. Compensation for closure of College
BACKGROUND:
2. The claim is on behalf of 7 lecturers who were employed in the College in Multyfarnham, Co Westmeath. The salaries of the 7 workers were funded by Teagasc. The College closed at the end of August, 2002, and the workers transferred to Teagasc on the 1st of September, 2002. The claim is that, whilst the workers transferred on existing salary and pension, they did not maintain their conditions of employment, resulting in substantial losses. The losses resulted from having to travel extra distances to work, a loss of 15 days' annual leave, having to work 1 extra hour per day and loss of a bonus payment. The Union estimates the loss per worker as an average of €33,400 per annum.
The College has rejected the claim on the basis that the Kennedy Report, which published in September, 2000, specifically stated that"we recommend that Multyfarnham and Warrenstown close immediately". Two other colleges in Rockwell and Monaghan also closed following the publication of the Report.
The dispute was referred to the Labour Relations Commission and a conciliation conference took place. As the parties did not reach agreement, the dispute was referred to the Labour Court on the 25th of April, 2003, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 26th August, 2003, in Athlone.
UNION'S ARGUMENTS :
3. 1. The College was viable at the time of closure, with substantial funding available from Teagasc.
2. The decision to close the College was made with student numbers at 75% of normal. This differed from other private college closures when student numbers had dropped to 25% or lower.
3. In the main, staff from other colleges who were re-employed by Teagasc got posts which involved the same amount of travel as their previous jobs. The workers concerned have to make daily round trips of up to 100 miles.
4. The Franciscan Order has benefited from the closure and has adequate resources to fund a severance package ( details supplied to the Court).
COLLEGE'S ARGUMENTS :
4. 1. Any changes to the terms and conditions of employment of the workers were brought about by Teagasc following the transfer. As such, the College should not be held responsible.
2. Following the closure of the College, Teagasc offered a transfer or voluntary early retirement to the workers. The workers individually negotiated with Teagasc in relation to the alternative employment on offer.
3. The Franciscan Order made every effort to ensure that the College was retained as a going enterprise, even offeringto rent the College and its facilities to Teagasc for the price of £1 (€1.27) per annum.
4. Following the publication of the Kennedy Report, and a continued decline in student numbers, the College had no viable alternative but to close.
RECOMMENDATION:
The Court is satisfied that in the circumstances of this case some compensatory payment is warranted to take account of the disruption caused to the claimants arising from the closure of the College and their consequent transfer to Teagasc.
The Court recommends that each lecturer associated with this claim be paid an ex-gratia payment of €5,000 in full and final settlement of all claims arising from the closure.
Signed on behalf of the Labour Court
Kevin Duffy
8th September, 2003______________________
CO'N / BGDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.