FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : BORD NA MONA (SUTTONS OIL) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Grier Worker Member: Mr O'Neill |
1. Rationalisation
BACKGROUND:
2. The case before the Court concerns a dispute between the Company and Union in relation to a rationalisation plan within the Company. The Company's position is that it is unable to sustain any additional costs.There are five drivers employed by the Company but due to a downturn in sales the Company would like to meet its operational needs by making one of the drivers redundant and introducing annualised hours for the remaining four. The Union is seeking an enhanced redundancy package of six weeks pay per year of service plus statutory entitlements plus overtime payments for additional work carried out once the number of drivers has been reduced to four. The Company's position is that it is operating in an extremely competitive market and any additional costs would affect its future viability.
The dispute could not be resolved at local level and was the subject of a number of conciliation conferences under the auspices of the Labour Relations Commission. As agreement was not reached the matter was referred to the Labour Court on 18th March 2005 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court Hearing took place on 3rd May 2006, the earliest date suitable to the parties.
UNION'S ARGUMENTS:
3. 1. The Company will secure a significant and ongoing saving as a result of the redundancy. The Union's claim is fair and reasonable in the circumstances.
2. The members are willing to take on the additional work of the fifth driver but must be paid accordingly for doing so.
COMPANY'S ARGUMENTS:
4. 1. The Company is operating in an extremely competitive environment and must rationalise in order to remain competitive. It has put forward numerous proposals to resolve the issues in dispute, all of which have been rejected by the Union.
RECOMMENDATION:
The position of the parties has not been sufficiently advanced in negotiations to allow the Court to make a helpful recommendation at this time.
Accordingly the Court recommends that the parties resume negotiations and seek to reach agreement on all issues within a timeframe of two months from the date of this Recommendation.
Signed on behalf of the Labour Court
Kevin Duffy
18th May 2006______________________
AHChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.