FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : TAYTO (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION TECHNICAL, ENGINEERING AND ELECTRICAL UNION MANDATE AMALGAMATED ENGINEERING AND ELECTRICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Doherty Worker Member: Ms Ni Mhurchu |
1. Severance terms.
BACKGROUND:
2. The Company is part of the C & C Group which decided earlier this year to close its manufacturing plant in Coolock for cost reasons, with effect from October, 2005. The closure decision was accepted by the Unions and the only issue in dispute was the amount of severance compensation. Discussions took place on the 13th July, 2005 on a severance package, little progress was made. Both sides agreed there was not enough movement to bridge the gap and the matter was referred to the Labour Relations Commission. On the 27th July, 2005 a Conciliation Conference was convened and following negotiations, no agreement was reached.
On the 28th July, 2005 Management met with the Shop Stewards to try and resolve the matter and made an improved offer which the Shop Stewarts agreed to recommend for acceptance. On the 10th August 2005, a general meeting took place and the improved proposals were put to a ballot. The proposals were rejected by the workers. The matter was then referred to the Labour Court on the 17th August, 2004 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 19th August, 2005
UNION'S ARGUMENTS:
3.1 The Unions are angry at the Company's decision to close the Plant.
2. The Company are still making money.
3. There is more money in the pot for the Redundancy.
4. The Cap proposed would discriminate against workers with long service.
COMPANY'S ARGUMENTS:
4.1 The proposals agreed with the Unions for recommendation and acceptance are extremely generous and very competitive within the food industry.
2. The Company is acutely aware of the impact of the closure of the Coolock plant on workers and in an effort to resolve the dispute and provide a level of certainty for the affected workers has substantially improved the terms which were previously agreed.
3. The terms on offer must be viewed in the context of a Company which has lost very substantial market share and profitability. There has been some recovery made, nonetheless it is expected that 2005 will see the gap closing to 50% of previous profit levels.
4. The proposals agreed for acceptance by the Unions will cost the Company in excess of €6.65 million.
RECOMMENDATION:
In the Court's view the final position of the Company is reasonable, having regard to all the circumstances of the case. The Court can see no basis upon which it recommend significant further improvements. However, in the interest of obtaining final agreement, the Court recommends that the package be modified by increasing the lump-sum proposed in consideration of an orderly wind-down payment to one of €4,500.
The Court recommends that the Company's final offer, with this modification, be put to the Unions and accepted in full and final settlement of the dispute.
Signed on behalf of the Labour Court
Kevin Duffy
22nd August, 2005______________________
JBChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Jackie Byrne, Court Secretary.