FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : WATERFORD STANLEY (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION DIVISION : Chairman: Mr Flood Employer Member: Mr Doherty Worker Member: Mr. Somers |
1. Improved redundancy payment.
BACKGROUND:
2. The Company manufactures and sells cast iron cookers, stoves and accessories to the home and export markets. It commenced operations at the Bilberry site in 1936. Several restructuring programmes have taken place over the last three years. Employment levels have reduced from 504 in 2000 to 205 currently.
The dispute before the Court concerns a claim by the Union on behalf of a worker, who was made redundant, for improved non-statutory terms.
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 10th of November, 2003, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 15th of April, 2004.
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UNION'S ARGUMENTS:
3. 1. No agreement exists between the Union and the company on voluntary or compulsory redundancy terms.
2. The Company was prepared to pay 2 weeks pay per year of service plus statutory redundancy to members of another union in a compulsory situation. The Company refused to negotiate or apply the same terms in the case of the worker concerned even though her employment was terminated through compulsory redundancy.
3. The Union seek recognition for the fact that the worker concerned succeeded in securing €28,000 in overdue accounts which the Company had tried to recover without success.
4.The Union are seeking, as a minimum, the compulsory redundancy terms of 2 weeks pay per year of service plus statutory redundancy.
COMPANY'S ARGUMENTS:
4. 1. In May, 2003, the Company moved from a position of LIFO (last in,first out) at 2 weeks plus statutory to a voluntary model at 3.5 weeks, inclusive of the new statutory redundancy terms, subject to a ceiling of €23,000.
2. The Company claims that the State applies a cap to statutory redundancy payment which has precisely the same effect as the formula agreed by the Company with its employees.
3. The worker concerned is not the only employee who is substantially affected by the 'cap'. Other employees, in membership of another union were affected in a similar way in respect of the amount received over and above the statutory entitlement.
RECOMMENDATION:
The Court is satisfied that this employee was faced with compulsory redundancy.
While noting the Company arguments in relation to the cap, the Court, given the compulsory aspect of this redundancy, finds that the claimant is entitled to a higher settlement.
Taking into account the fact that she had recovered €28,000 in overdue debts and that the redundancy was compulsory, the Court recommends that the Company pay her €12,500 in addition to her statutory entitlements of €21,839.70 in settlement of her claim.
Signed on behalf of the Labour Court
Finbarr Flood
5th May, 2004______________________
MG/MB.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Madelon Geoghegan, Court Secretary.