FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : INTEGRATE IRELAND LANGUAGE & TRAINING (IILT) (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Doherty Worker Member: Mr Nash |
1. Severance Terms
BACKGROUND:
2. Integrate Ireland Language and Training (IILT), which was funded by the Department of Education and Science, had provided English language training and support services to refugees for the past 8 years at a number of centres around the country.
It ceased its activities at the end of August, 2008 and transferred its workload and a number of its staff to the VEC, the remaining Workers have received their statutory redundancy packages. The Union is seeking 6 weeks pay including statutory redundancy for all staff with more than 104 weeks service and a lump sum payment equal to 3 months pay for those with less. The Company contends that the necessary funding is not available.
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 21st August, 2008 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the18th September, 2008.
UNION'S ARGUMENTS:
3. 1. The claim to enhance the redundancy package to equal 6 weeks inclusive of statutory payments is reasonable and in line with the education sector.
2. The payment of a lump sum equal to 3 months salary to those who do not qualify for redundancy is not excessive or an unmanageable amount of compensation in this case.
3. The Department of Education and Science will make substantial saving by having its language programme delivered at a lower rate of pay through the VEC.
COMPANY'S ARGUMENTS:
4. 1. IILT was a non-profit campus company of Trinity College with charitable status, it relied on the Department of Education and Science for funds which were granted on a per student capita basis. There was no allocation for funding redundancy payments beyond the statutory obligation.
2. The Company has commenced the process of voluntary liquidation and therefore is not in a position to make redundancy payments in excess of the statutory entitlements to Employees.
RECOMMENDATION:
The matter before the Court concerns a claim for an ex-gratia redundancy payment for those employees made redundant as a result of the closure of the Company’s language and support services, which were funded by the Department of Education and Science. The Court notes that these services will from now on be provided by the VEC sector.
In all the circumstances of this case, the Court recommends five weeks pay per year of service inclusive of statutory redundancy payments to all those eligible for statutory redundancy. The Court does not recommend an ex-gratia payment for those with less than two years service.
The Court notes that some workers have submitted claims under the Transfer of Undertaking Regulations for redeployment within the VEC sector and accordingly, recommends that in such instances, the above payments should not be paid out pending their outcome.
The Court so recommends.
Signed on behalf of the Labour Court
Caroline Jenkinson
2nd.October, 2008______________________
JFDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to John Foley, Court Secretary.