FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : ABX LOGISTICS (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Doherty Worker Member: Mr Nash |
1. Relocation and redundancy.
BACKGROUND:
2. The Company is part of the ABX Logistics Worldwide SA/NV and provides transport and logistics services. The company has four offices in Ireland based in Dublin, Cork, Waterford and Shannon. The Company employs 70 staff in its Dublin office.
The matter before the Court concerns a dispute between the Company and SIPTU regarding the Company’s survival plan a) to relocate its operations to Ballycoolin for a period of 9-12 months and then to Blanchardstown on a permanent basis and b) the 5 redundancies resulting from the moving of its import business to a third party.
The Company offered a voluntary redundancy package of 3 weeks pay per reckonable years service to a maximum of €25,000 to the warehouse staff whose positions may be redundant.
Regarding staff who relocate to Ballycoolin the Company proposed to compensate the additional cost involved, e.g. toll fees by way of either vouchers or cash for a period of six months for staff living on the south side of the city who would be financially affected by the move. Additionally it offered to pay a disturbance allowance of
€300 per person to all staff after six months at the new premises.
The Union, on behalf of its member, is seeking 6 weeks pay for each year of service inclusive of statutory payment and without a cut off point. For those using their own cars a total payment of €43 per week to cover toll charges and a petrol allowance, and for those using public transport the Company to continue to provide a round trip shuttle bus which will pick them up at the current pick up point and ferry them to the new site. The Union are also seeking a once off relocation payment of €1,500 to be paid to all remaining staff.
The matter 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 22nd February 2006, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 16th March, 2006.
UNION'S ARGUMENTS:
3. 1.In recent years the Union has dealt with the Company on redundancy matters. Under the auspices of the LRC the principal of six weeks pay for each year of service has been established as a precedent.
2. In recognition of past and continued cooperation the extent of the relocation package should reflect the Company's appreciation of the staff for their service and loyalty to the Company.
3. The Company's capping at €25,000 is unreasonable and cannot be attained by even the highest paid worker when calculated against the Company's offer of three weeks.
COMPANY'S ARGUMENTS:
4. 1.The relocation and redundancies are urgently required for the future survival of the Company.
2. The Company's lease in Park West expires on the 31st March, 2006. Unless resolution is reached by that time it will face severe financial penalties. It is critical that relocation occur prior to that date.
3. The precedent cited by the Union was agreed at a time when the Company was in a far healthier financial position.
RECOMMENDATION:
Having considered the submissions of the parties the Court recommends that the Company amend its proposals as follows:-
Severance Package
A severance package of 6 weeks pay per year of service, in line with the previous agreement concluded at the Labour Relations Commission in December 2003, should be offered.
Relocation Package
A once off lump sum of €850 should be offered to those relocating.
Travel Costs
A payment of €880 per year for a fixed period of 2 years should be offered to those who will be required to incur toll costs in travelling to the new location.
Those using public transport should be provided with an annual bus ticket for a fixed period of two years.
The other terms and conditions of this offer should be in line with the Company's previous offer.
This offer should be accepted in full and final settlement of this dispute and on the basis that relocation should proceed on the date proposed.
Signed on behalf of the Labour Court
Kevin Duffy
22nd March, 2006______________________
MG.Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Madelon Geoghegan, Court Secretary.