FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : KILLARNEY ENTERPRISES LIMITED (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Flood Employer Member: Mr Grier Worker Member: Ms Ni Mhurchu |
1. Redundancy terms.
BACKGROUND:
2. Killarney Enterprises Limited is located in Arklow and manufactures soap products for export to Nigeria (its only market). It employs about 40 workers and is owned by Edinburgh Holdings, U.K., part of a multinational group, Lornamede International. The Nigerian Government recently banned the importation of the soap products manufactured by the Company from 31st March, 2004. As a direct consequence the Company has decided to close the Irish plant with the loss of all jobs. There is no alternative market for the product from the Irish plant. The Company has issued notices of redundancy with the first redundancies to take effect from 19th March, 2004. The Company has offered statutory redundancy terms only. The Union are seeking 6 weeks pay per year of service plus statutory entitlements (to reflect pay increases due). Non-Union staff are seeking 8 weeks pay per year of service, plus statutory entitlements.
The dispute could not be resolved at local level and was the subject of a conciliation conference under the auspices of the Labour Relations Commission. As agreement was not reached the dispute was referred to the Labour Court on the 18th March, 2004 in accordance with Section 26(1) of the Industrial Relations Act, 1990. Non Union staff attended both the conciliation conference and the Labour Court hearing. A Labour Court hearing took place on the 8th April, 2004.
UNION'S ARGUMENTS:
3.1 The Company is part of a multinational conglomerate whose owners are extremely wealthy The workers played their fair share in the creation of that wealth.
2. The Company failed to engage in meaningful discussions to avert the closure. A lump sum equivalent to the value of each individuals minimum notice should be paid to each workers as compensation.
3. Management is entirely culpable for the demise of the Arklow plant in that they failed to expand their range of products or secure other markets.
NON-UNION STAFF ARGUMENTS
4.1 The Company has made a profit every year that it has been trading (17 years).
2. The Company has accumulated gross income in the last 6 years of Stg. £3.3 million.
3. The workers are seeking a reasonable redundancy settlement to repay the unstinting efforts they made over the past 17 years.
COMPANY'S ARGUMENTS:
5.1 The Company has invested significantly in the plant, which resulted in improvements in work practices and rates of pay over and above those provided by the national agreements.
2. Due to the situation in Nigeria, (the ban on soap products) the Company cannot realise its investment and is at a considerable loss as a result of the closure.
3. The Company has endeavoured to maintain employment at the plant.
4. The average length of service in the Company is 8 years, over a third have in excess of 12 years service. Given the improvements in statutory redundancy negotiated by the social partners the majority of workers are entitled to significant sums of money on a tax free basis.
RECOMMENDATION:
The Court, having considered the written and oral submissions made by the parties, and taking into account all the circumstances, recommends that the Employer pay the claimants 2½weeks' pay per year of services plus "the new" statutory redundancy entitlements.
Signed on behalf of the Labour Court
Finbarr Flood
23rd April, 2004______________________
JBDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Jackie Byrne, Court Secretary.