FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : BEAUMONT CONVALESCENT HOME (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION IRISH MUNICIPAL, PUBLIC AND CIVIL TRADE UNION DIVISION : Chairman: Mr McGee Employer Member: Mr Carberry Worker Member: Ms Ni Mhurchu |
1. Redundancy terms.
BACKGROUND:
2. In April 2004 the Home advised Unions and Staff of a need to reduce employee numbers by 37 whole time equivalent posts ( approximately 60 jobs ) because of substantial losses occurred over a number of years. Management stated that the Home would not survive without significant cost reductions and restructuring. Management advised that only statutory redundancy entitlements could be offered to workers. The Unions sought five weeks pay per year of service inclusive of statuary entitlements. Management rejected the claim. The dispute was referred to the Labour Relations Commission. A conciliation conference was held, but agreement was not reached. The dispute was referred to the Labour Court on the 3rd, June, 2004 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing was held on the 11th August, 2004.
UNIONS' ARGUMENTS
3. 1. The Unions accept that redundancies are inevitable. They do not accept the numbers proposed by Management.
2. The Unions contend that the finances of the facility were not only mismanaged but also not managed. This failure of obligation has led to the current situation for which workers are expected to pay the price.
3. Redundancy must be voluntary. Compensation must exceed the statutory requirement. The saving arising from the redundancies and restructuring will be substantial. These would justify workers receiving some benefit in the form of enhanced redundancy payments.
MANAGEMENT'S ARGUMENTS:
4. 1. The Home has been in a loss making situation since 1999. Between 2002-2003 losses doubled and reached over one million euro. The Home currently sustains losses of approximately €80,000 per month.
2. Unless immediate cost reductions and restructuring of operations take place the Home will be forced to close its operations.
3. The Home has no cash funds left, nor has it funds available either in credit or otherwise.
4. Any redundancies terms in excess of statutory entitlements will jeopardise the Home's survival and result in further job losses.
5. As the current financial situation stands the Home will have to rely on the redundancy rebate to fund the total package.
RECOMMENDATION:
The Court having considered the submissions and noting the information provided to it on the financial situation of the Home, recommends that the severance terms be increased to three weeks pay per year of service (including statutory redundancy entitlement) and that this be accepted by the Trade Unions.
Signed on behalf of the Labour Court
Raymond McGee
25th August, 2004______________________
TO'D/JBDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Tom O'Dea, Court Secretary.