FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : AMERICAN COLLEGE (REPRESENTED BY IRISH BUSINESS EMPLOYERS CONFEDERATION) - AND - SIX NAMED CLAIMANTS (REPRESENTED BY SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION) DIVISION : Chairman: Mr Duffy Employer Member: Mr Murphy Worker Member: Ms Ni Mhurchu |
1. Improved Redundancy Payment
BACKGROUND:
2. This case concerns a dispute between the American College represented by Irish Business Employer's Confederation (IBEC) and Services, Industrial, Professional, Technical, Union (SIPTU) in relation to the Union's claim for an enhanced redundancy package to six Englsih teachers who are being made compulsory redundant following the closure of the English language school.
The Union's claim is for six weeks pay per year of service inclusive of statutory entitlements. It contends that the claim is fair and is in line with similar redundancies within the education sector.
Management's position is that the cost of the claim is unsustainable, given the current economic climate. It also contends that further enhancement of the redundancy package on offer (Statutory plus 10%) will inevitably cost more jobs going forward and may lead to the closure of the entire college.
On the 4th June 2008, the Union referred the matter to the Labour Court in accordance with Section 20(1) of the Industrial Relations Act, 1969 and agreed (on behalf of the six claimants) to be bound by the Court's Recommendation. A Labour Court hearing took place on 21st August, 2008.
UNION'S ARGUMENTS:
3 1 The cost of the claim is not excessive as the College runs many successful programmes/ courses. The claim as presented will not have any negative effect on the future viability of the College
2 The claim for six weeks pay per year of service inclusive of statutory entitlements is fair and in line with similar redundancies in the education sector.
3 The College has made significant rental savings from the closure of the English Language School.
COMPANY'S ARGUMENTS:
4 1 The College is operating in an extremely competitive environment. It faces further financial pressures due to the current economic conditions and cannot sustain any additional costs.
2 Concession of the claim will inevitably lead to further job losses and the possible closure of the entire college.
RECOMMENDATION:
In formulating this Recommendation the Court has had full regard to the financial circumstances of the college, the length of service of those affected by the redundancy, the cost of the recommended package and the savings which will accrue to the College from the closure of the English Language Course.
The Court recommends that the College offer and the Union accept a package of five weeks pay pe ryear of service inclusive of statutory redundancy payments.
Signed on behalf of the Labour Court
Kevin Duffy
28th August 2008______________________
AHChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.