FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : HOYER IRELAND LTD (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Flood Employer Member: Mr Grier Worker Member: Mr O'Neill |
1. Severance terms
BACKGROUND:
2. The Company's core business is transportation of liquid chemicals for various Companies and has operated a contract for aeroplane re-fuelling at Shannon Airport. Due to increased revenues and costs, Aer Rianta made the decision to terminate the Company contract in March 2003 resulting in four employees being made redundant in May 2003, when all work was concluded.
The dispute before the Court concerns a claim by the Union in respect of two members employed on a full-time basisfor enhanced redundancy payments and an ex-gratia payment for one member employed on a part-time basis.
- The Company rejects the claim on the basis that the claim is excessive.
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 7th November, 2003, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 4th February, 2004, the earliest date suitable to the parties.
UNION'S ARGUMENTS:
3. 1. The employment of the members was terminated due to the closure of the Company's operation at Shannon Airport. They sought to have their redundancy payments enhanced as compensation for the loss of employment as the probability of finding similar work in the area is low.
2. The Company can afford to pay an enhanced redundancy package.
3. The Union are seeking eight weeks per year of service and old statutory redundancy payment for the two full-time members.Redundancy settlements in this region have averaged six to eight weeks per year of service.The Union are seeking an ex-gratia payment of 25% of the full redudancy payment for the third member.
COMPANY'S ARGUMENTS:
4. 1. The value of the Union's claim for enhanced redundancy payments is excessive and at a level which the Company cannot sustain. The Company accepts the need to improve it's offer but the Union's claim needs to be reduced to a more realistic level.
2. The Company is at a loss of revenue resulting in the termination of the contract at Shannon Airport.
3. The claim for 25% for the part-time employee is excessive given that there is no entitlement to redundancy, however the Company are prepared to offer an ex-gratia payment, but not at the level claimed.
RECOMMENDATION:
The Court, having considered the written and oral submissions made by the parties recommends that the Company pay the 2 full – time workers €21,000 (inclusive of statutory payments) in full and final settlement of their claim.
The relief Employee to be paid €5,000 (inclusive of statutory payments, if relevant) in full and final settlement of his claim.
Signed on behalf of the Labour Court
Finbarr Flood
16th February 2004______________________
JO'CDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Joanne O'Connor, Court Secretary.