FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : AD TEC TEORANTA (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - AMICUS DIVISION : Chairman: Mr Duffy Employer Member: Mr Doherty Worker Member: Mr O'Neill |
1. Redundancy Terms
BACKGROUND:
2. This case concerns a dispute betwen the Company and the Union in relation to the redundancy terms applicable to 7 workers who are currently employed by the Company. The Company was initially involved in the manafacture of specialised whole vehicles for military and civilian use but recently its core business is the heavy duty suspension systems for the vehicles with no whole vehicles manufactured at present.
The Company's offer in relation to the redundancies was to pay 3.5 weeks pay per year of service with a cap of 65 weeks pay. The Company subsequently agreed to improve the package on offer but the removal of the cap on the redundancies was not an option.
The Union position was that the imposition of the cap would result in substantial losses in redundancy payments given the lengthy service of the workers in question.
The dispute could not be resolved at locl level and was the subject of a conciliation conference under the auspices of the Labour Relations Commission. The matterwas not resolved and was subsequently referred tothe Labour Court on 28th May, 2007 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 8th June, 20007.
UNION'S ARGUMENTS:
3 1 The imposition of a cap will result in a huge financial loss to those being made redundant.
2 Previous redundancies in the Company were not subject to the imposition of a cap.
COMPANY'S ARGUMENTS:
4 1 The Company must remain viable going forward and must consider the financial implications of removing the cap on the redundancies.
2 Every effort has been made to bring about a satisfactory resolution to this difficult situation.
3 The previous redundancies that occurred with no cap involved workers with relatively short service.
RECOMMENDATION:
The Court notes that in previous redundancies the Compny paid an ex gratia lump sum of three weeks pay per year of service without any cap on the amount payable. The Court does, however, understand that those being made redundant at that time had relatively short service.
In the circumstances of the present redundancies the Court believes that an ex gratia amount of two weeks pay per year of service (plus statutory redundancy) should be paid. However, having regard to all the circumstances of this particular case, the Court is not satisfied that a sustainable case has been made out for the imposition of a cap. Accordingly, the Court recommends that no cap be imposed.
Signed on behalf of the Labour Court
Kevin Duffy
28th June 2007______________________
ahChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.