FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : THE CARE TRUST LIMITED - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr McGee Employer Member: Mr Doherty Worker Member: Mr Nash |
1. Restructuring/redundancy
BACKGROUND:
2. The Company is a non-profit-making registered charity, owned jointly by the Central Remedial Clinic (CRC) and the Rehab Group. The Company is a fund-raising entity and generates revenue primarily by standing orders, door to door collections and wage deductions. The Company is presently restructuring its Dublin operation and one of the results has been the loss of a regional sales manager from its current compliment of three (10 posts nationally). The dispute concerns the redundancy package on offer. The Union claims that a 2001 agreement covered the number sales managers going forward and the specific redundancy terms applicable (statutory plus 4 weeks pay per year of service). The Company is offering statutory plus two weeks' pay per year.
The dispute was referred to the Labour Relations Commission and a conciliation conference took place. As the parties did not reach agreement the dispute was referred to the Labour Court on the 1st of August, 2007, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the on the 8th November, 2007.
UNION'S ARGUMENTS:
3. 1. The 2001 agreement voted on and accepted by the workers refers specifically to the terms of redundancy payments going forward.
2. The Company can afford to pay the redundancy sought by the Union. In July 2003 it agreed to increase the Area Sales Managers by 2, a commitment not adhered to, thus providing the Company with an on-going pay-roll saving in excess of €140,000 per year. Reducing the number of Managers from 10 to 9 has provided the Company with further substantial savings.
COMPANY'S ARGUMENTS:
4. 1. The traditional model of the Company's business is under serious threat. The Company needs prudent cost control if it is to secure its future and protect employment. In the context of the present claim it is clear that the redundancy payments, whilst being fair to the individual, should also reflect the Company's ability to pay.
2. Statutory redundancy has applied to all recent redundancies within the Company so its offer of statutory plus 2 weeks pay is a considerable improvement.
RECOMMENDATION:
Having considered the submissions of the parties, the Court recommends that the terms applicable to redundancies be 4 weeks' basic pay per year of service in addition to statutory entitlements.
Signed on behalf of the Labour Court
Raymond McGee
17th December, 2007______________________
CONDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.