FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : THE POINT EXHIBITION COMPANY LTD (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION TECHNICAL, ENGINEERING AND ELECTRICAL UNION DIVISION : Chairman: Mr McGee Employer Member: Mr Murphy Worker Member: Mr Nash |
1. Severance Terms
BACKGROUND:
2. The Point Exhibition Centre will close on 31st August 2007 for approximately 18 months to allow for renovations in order to increase seating capacity by 50% and maintain the venue's viability into the future. In the 5 month period since the announcement of the closure, the Company has engaged in formal consultations with the Unions resulting in agreement on all issues with the sole exception of the severance package relating to the number of weeks per year of service plus statutory redundancy entitlements.
The dispute 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 17th August 2007 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour court hearing took place on the 24th August 2007.
UNION'S ARGUMENTS:
3. 1. Due to the success of the Company over many years, the enhanced severance package of 5weeks pay per year of service plus statutory entitlements being sought is not a financial issue.
2. As the closure is only temporary the Company can recoup the cost of the redundancy package through increased ticket sales and prices.
3. The Company is part of a global multinational which can easily afford the cost of the claim.
COMPANY'S ARGUMENTS:
4. 1. The package on offer of 3.75 weeks pay per year of service plus statutory redundancy entitlements is well above the norm for the Cinema/Theatre sector.
2. Current economic realities dictate that a greater redundancy-related precedent should not be created.
RECOMMENDATION:
Having considered the submissions made by the parties, the Court considers that, in all the unique circumstances of this case, notably the unusual nature of the employment, the Company should increase the ex-gratia element of the offered severance package of 3.75 weeks' pay per year of service to 4.5 weeks' per year of service in addition to statutory entitlements and that this should be accepted by the Unions on an entirely non-precedential basis.
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The Court so recommends.
Signed on behalf of the Labour Court
Raymond McGee
3rd September 2007______________________
JFDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to John Foley, Court Secretary.