FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : CARROLL SYSTEMS LIMITED - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION UNION OF CONSTRUCTION, ALLIED TRADES AND TECHNICIANS DIVISION : Chairman: Mr Duffy Employer Member: Mr Doherty Worker Member: Mr Nash |
1. Redundancy Terms
BACKGROUND:
2. This dispute concerns the Company's decision to cease manufacturing at its Kilkenny plant and to make the employees redundant. The Company is claiming an inability to pay even statutory redundancy payments.
This 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 5th June, 2009, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 3rd July, 2009, the earliest date suitable to the parties.
UNIONS' ARGUMENTS:
3. 1. The Workers have given decades of loyal, hard-working service to the Company.
2.The Company refuses to allow the Unions' financial expert to examine its accounts.
3.Although the Company claims it is insolvent it is continuing to trade.
COMPANY'S ARGUMENTS:
4. 1. Since 2007, the Company has experienced a drop of 80% in its sales.
2. The Company has exhausted all of its financial resources in an unsuccessful attempt to maintain a viable manufacturing plant in Kilkenny.
3.As the Company finds itself unable to pay statutory redundancy payments it is unable even to discuss enhanced redundancy payments.
RECOMMENDATION:
The Court has considered the submissions of the parties in this case.
It is noted that the gist of the Company's case is that it is unable to pay anything by way of redundancy pay. It told the Court that an application has been made to the Department of Enterprise, Trade and Employment for payment of statutory redundancy lumps out of the Social Insurance Fund.
On the basis of the limited information furnished to it, the Court could not conclude that the financial circumstances of the Company are such as to preclude the possibility of paying enhanced redundancy terms. In that regard it is noted that the parties previously concluded an agreement for the payment of five weeks' pay per year of service, inclusive of statutory terms, in respect of voluntary redundancy. It is further noted that an associated Company recently agreed to pay four weeks pay per year of service inclusive of statutory.
Having regard to all the circumstances of this case the Court recommends that the Company offer and the Unions accept a package of four weeks' pay per year of service, inclusive of statutory.
Signed on behalf of the Labour Court
Kevin Duffy
7th July, 2009______________________
JMcCChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Jonathan McCabe, Court Secretary.