FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : TILLOTSON LIMITED (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION BY MANDATE DIVISION : Chairman: Mr Duffy Employer Member: Mr Doherty Worker Member: Mr Nash |
1. Redundancy terms.
BACKGROUND:
2. The Company is engaged in the production of carburettors for two-stroke engines and the Tralee plant is involved in the export market. The case refers to approximately 40 redundancies being sought by the Company and the redundancy terms which will apply. In late January, 2008, the Company offered redundancy terms of statutory entitlements plus one week' basic pay per year of service. The offer was rejected by the Unions which are seeking four weeks' pay ex-gratia plus statutory entitlements.
The dispute was referred to the Labour Relations Commissions and a conciliation conference took place. As the parties did not reach agreement the dispute was referred to the Labour Court on the 27th February, 2008, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 19th March, 2008.
UNIONS' ARGUMENTS:
3.1.Unemployment in the Kerry area is higher than the National average and the pay of the workers concerned is €190 per week below the average industrial wage.The Company's offer is paltry and should be increased .
COMPANY'S ARGUMENTS:
4. 1. Due to the competitive nature of the business the Company has, over the last number of years, lost all major customers due to price. It has secured only enough funds to pay statutory entitlements plus one week's pay per year of service. The cost of the Unions' claim would be an additional €962,902 which the Company could not afford.
RECOMMENDATION:
Having considered the submissions of the parties the Court does not see any compelling reason to depart from the redundancy terms applied in the most recent redundancies in 2007.
Accordingly, the Court recommends that the terms previously applied of 2 weeks pay per year of service plus statutory entitlements should apply. The Court further recommends that calculations be based on earnings in respect of full time working.
Signed on behalf of the Labour Court
Kevin Duffy
7th April, 2008______________________
CON.Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.