FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : SAICA PACKAGING IRELAND LTD - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Ms Doyle Worker Member: Mr O'Neill |
1. Redundancy terms.
BACKGROUND:
2. The Company, which manufactures cardboard boxes, has three plants in Ireland based at Glasnevin, Dublin, Ashbourne, Co. Meath and Warrenpoint, Co. Down. Ashbourne (formerlyInternational Paper) was taken over by SAICA approximately 3-4 years ago. Glasnevin (formerlySCA) was taken over by SAICA in 2008 under a transfer of undertakings situation. A number of voluntary redundancies took place in the SAICA Ashbourne plant in May 2008 and the Company applied a package that reflected a previous Labour Court Recommendation (LCR18272) that had applied in Ashbourne's previous manifestation as International Paper. The Company's Glasnevin plant is to close and the offer of 4.5 weeks pay per year of service inclusive of statutory was rejected by the Union who are seeking an enhanced redundancy offer.
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 13th March, 2009 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 6th April, 2009.
UNION'S ARGUMENTS:
1. 1. It would be appropriate if Union members were offered a package substantially in excess to that given in Ashbourne on a voluntary basis as this is a compulsory redundancy situation.
2. As operations will transfer to Ashbourne, an offer of at least 6.5 weeks inclusive per year of service should apply which is in line with a previous Labour Court Recommendation.
COMPANY'S ARGUMENTS:
2. 1. If any precedent is to be cited it should be the SCA precedent which should apply only to the Glasnevin Plant.
2. The Company has moved considerably from its original position and the offer of 4.5 weeks pay per year of service inclusive of statutory exceed the industry norm which is currently statutory plus two weeks pay per year of service.
3. The offer is in line with transfer of undertakings obligations and is reasonable in the current economic climate.
RECOMMENDATION:
The Court believes that there is cogency in each of the opposing positions adopted by the parties. The Company's offer is in line with that paid and accepted by the Union in previous redundancies involving the SCA Group. Moreover, the offer is in excess of the norm for the paper industry.
However, the recent package made available by the new owners of the plant in Ashbourne is relevant and undoubtedly created an expectation amongst those presently being made redundant that similar terms could be aspired to. This is particularly so since part of the reason for the proposed closure of the Dublin plant is to facilitate consolidation of the available business in Ashbourne.
In all the circumstances of the case, and on the basis that no precedent is created, the Court recommends that in this case the Company offer and that the Union accept a package of 5.5 weeks pay per year of service inclusive of statutory entitlements.
Signed on behalf of the Labour Court
Kevin Duffy
16th April, 2009______________________
JFChairman
NOTE
Enquiries concerning this Recommendation should be addressed to John Foley, Court Secretary.