FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : LEESIDE OIL TERMINAL COMPANY LTD (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr McGee Employer Member: Mr Murphy Worker Member: Mr Nash |
1. Extension of goodwill payment.
BACKGROUND:
2. The Union, on behalf of five of its members, is seeking a goodwill payment on the basis that its members are entitled to the same payment as that made to former Statoil Ireland Limited employees when Statoil exited the Irish market following its takeover by Topaz Energy Group in January 2007.
The Workers concerned were employees of Leeside Oil Terminal Company Limited (Galway) which was formed as a joint venture company by Statoil and Texaco Ireland. These employees were employed on completely separate contracts of employment, terms and conditions of employment and pension arrangements from the direct employees of Statoil Ireland Limited.
The Union is seeking a goodwill payment of 4 months' salary which is the amount that was extended to all Statoil Ireland direct employees on completion of the sale of the Company to Topaz Energy Limited. This payment would have been worth €16,000 each to the Union's members.
The issue could not be resolved at local level. The Union referred the claim to the Labour Court on the 31st January, 2008, in accordance with Section 20(1) of the Industrial Relations Act, 1969, and agreed to be bound by the Court's recommendation. A Labour Court hearing took place on the 24th September 2008, the earliest date suitable to the parties.
UNION'S ARGUMENTS:
3. 1. The Union maintains that since 1990 all Leeside meetings, productivity deals etc have been conducted with Statoil. On no occasion did a Texaco staff member attend such meetings.
2. The Union cited a letter from Statoil of July 2006 stating that "employees of Leeside Oil Terminal Company Limited (Galway) are not affected in any significant way..." as a key reason for not including these employees with regard to the goodwill payment.
3. The Union contends that their members were impacted in a major way by the takeover of Statoil by Topaz with their jobs effectively being phased out as a result of the change of ownership.
COMPANY'S ARGUMENTS:
4. 1.Statoil Ireland Limited only provided a goodwill payment to its direct employees. No goodwill payments were made to employees of the numerous subsidiary companies in which Statoil has interests.
2. The Company maintains that there was absolutely no impact on the employees of Leeside Oil Terminal Company Limited when Statoil was sold to Topaz Energy Limited. All the redundancies that took place following the sale of Statoil Ireland were on a voluntary basis.
3. Statoil Ireland also had numerous joint venture companies and no payment was made to the employees of any of these following the sale.
RECOMMENDATION:
Having considered the written and oral submissions made by the parties, the Court does not recommend concession of the Union's claim.
Signed on behalf of the Labour Court
Raymond McGee
13th October, 2008______________________
MGDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Madelon Geoghegan, Court Secretary.