FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : C + D PROVIDERS LTD - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Ms Doyle Worker Member: Mr O'Neill |
1. Redundancy Terms
BACKGROUND:
2. In early 2009 the Company, which runs a builders' providers business in Co Wexford, made workers compulsory redundant due to a downturn in business and paid them statutory terms. This dispute concerns a claim for the payment of an enhanced redundancy package for these workers.
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 1st December 2008, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 2nd July, 2009, the earliest date suitable to the parties.
UNION'S ARGUMENTS:
3. 1. The Workers concerned had given the Company loyal service over many years.
2. The Union has concluded enhanced redundancy packages of at least three weeks plus statutory with three companies in this sector.
3.Although the Company is experiencing an unprecedented downturn in business it is part of a profitable group and should agree to a reasonable redundancy package.
COMPANY'S ARGUMENTS:
4. 1. The Company has experienced a dramatic collapse in sales and expects to lose €2 million in 2009.
2. The Company does not have the funds to make any additional payments to its former employees.
3.Only for the financial support of its parent company the business would not be viable.
RECOMMENDATION:
The claim before the Court is on behalf of 5 workers seeking an enhanced redundancy payment.
Having considered the oral and written submissions of both parties, the Court recommends that the Company should treat the 5 named claimants in the same manner as those who made redundant since February 2009. The Court makes this recommendation on the basis that the claimants had formally pursued their claim through the normal industrial relations procedures and were the subject of conciliation at the Labour Relations Commission, prior to the date of the Company’s proposals.
Therefore, the five named claimants should be paid an ex-gratia payment of one week’s pay per year of service in addition to the statutory redundancy payment already paid.
The Court so recommends.
Signed on behalf of the Labour Court
Caroline Jenkinson
28th July, 2009______________________
JMcCDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Jonathan McCabe, Court Secretary.