FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : SEALED AIR CORPORATION (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - AMICUS-AMALGAMATED ENGINEERING AND ELECTRICAL UNION AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Doherty Worker Member: Mr. Somers |
1. Redundancy Terms.
BACKGROUND:
2. The Company manufactures plastic and PVC containers at a plant in Greenore, County Louth and employes 54 workers. Following a decision of the parent company in the U.K. the Greenore plant is to close with the loss of 54 jobs. The Unions are claiming a redundancy package of 6 ½ weeks pay per year of service including statutory entitlements. The Company has made a final offer of 2.8 weeks plus statutory. The offer was rejected following a ballot of the workforce. The dispute was referred to the Labour Relations Commission. A conciliation conference was held but agreement was not reached. In August, 2003 the dispute was referred to the Labour Court in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Court hearing was held on the 10th September, 2003.
UNIONS' ARGUMENTS:
3. 1. The Greenore plant has been profitable up to the date of closure. Workers have made a significant contribution.
2. The Company's offer was rejected by a substantial majority of workers. They are dissatisfied at the value that the Company has placed on the closure and the loss of their jobs.
3. The cost of concession of the Unions' claim is not significant. The Company will make huge profits in the future and the Greenore site is worth in excess of €1 million.
4. There is little prospect of the claimants obtaining new employment in the area.
COMPANY'S ARGUMENTS:
4 1. The parent Company has subsidised the survival of the Greenore plant for the past three years at a significant cost. The claimants have benefited from three years extra employment and earnings. The extra years worked impacts positively on their redundancy settlements.
2. The Company's offer is generous when compared to that offered to employees being made redundant at the Company's UK plant.
3. The Company's offer is well within the norms of industries in Ireland and generous compared to redundancy packages offered.
RECOMMENDATION:
Having carefully considered the submissions of the parties the Court recommends that the Company offer and that the Union accepts a redundancy package of five weeks pay per year of service, inclusive of statutory entitlements.
Signed on behalf of the Labour Court
Kevin Duffy
19th September, 2003______________________
TODDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Tom O'Dea, Court Secretary.