FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : CALOR GAS (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr McGee Employer Member: Mr Murphy Worker Member: Mr O'Neill |
1. Redundancy Terms
BACKGROUND:
2. In June 2008, the Company announced is decision to close its cylinder filling operations at Dublin Port and send the work to its sister plants in Cork and Belfast. According to the Company, overall cylinder volumes are only 20% of what they were at their peak in 1980 and the transport cost of cylinder distribution has increased significantly. The Union disputes the fact that the Dublin filling station should close and argue that the Company refused to even explore other options. The Union argues that the mandatory 30 day consultation period which it had to negotiate a resolution was an unreasonable timeframe due to the inferior redundancy package offered by the Company. The Company argues that the redundancy package is fair and reasonable.
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 21st July, 2008 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 31st July, 2008.
UNION'S ARGUMENTS:
3. 1 The Company knew that the Dublin filling platform was to close for some considerable time. This period could have been useful as a period of consultation , exploration and negotiation as opposed to the mandatory 30 days' consultation period.
2 The Union is seeking an improved package of 8.5 weeks pay per year of service, inclusive of statutory redundancy. An ex-gratia payment based on basic pay and overtime, an orderly wind-down payment and a minimum payment of 15 months pay for those with short service are also sought. For those close to retirement the Union is seeking 80% of earnings to retirement plus Statutory, or three years wages, whichever is the greater entitlement. For those in receipt of the package, a cap of 3 years excluding statutory redundancy should apply.
3 The previous redundancy packages agreed in 1992 and 1999 were far more enhanced packages than currently on offer.
COMPANY'S ARGUMENTS:
4. 1 The market today is a small fraction of what it was and continues to decline annually. The Dublin filling platform is the logical choice when it comes to reducing capacity.These facts have not been disputed by the Union.
2 The Company believe that its offer of 6.5 weeks pay per year of service, inclusive of statutory redundancy, an ex-gratia payment made on current basic pay, a guaranteed minimum payment for low service employees of 9 months and an orderly wind-down payment of €500 is reasonable and fair.
3 This redundancy results from a loss of business and involves rationalisation. Previous redundancy situations that existed within the Company centred around significant productivity improvements.
RECOMMENDATION:
The Court recommends that the offer made by the Company at Conciliation should be accepted by the Union with the following amendments:
- Ex-gratia payments should be based on 39 hours' basic pay plus 5 hours' average overtime.
- The payment for an orderly wind-down of operations should be increased to €1000 per employee.
Signed on behalf of the Labour Court
Raymond McGee
13th August, 2008______________________
DNDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to John Foley, Court Secretary.