FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : DAWN MEATS - AND - 57 BONING HALL STAFF (REPRESENTED BY SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION) DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Doherty Worker Member: Mr Nash |
1. Redundancies.
BACKGROUND:
2. On the 13th March, 2009, the Company decided to close the Boning Hall in Midleton, Co. Cork. The closure is to take effect on 5th June, 2009, with the loss of 65 jobs, 57 of whom are represented by the Union. The Company cited operational reasons for the closure. The Company's final offer was 3 weeks' pay per year of service inclusive of statutory redundancy with a ceiling of €600 per week applying. The Union sought 6 weeks' pay per year inclusive of statutory. The Union also requested that employees seeking a move to the abattoir in Midleton or the boning hall in Charleville should be accommodated. At the Labour Court hearing the Company denied that it had stated that there were any vacancies in Charleville, as the Union claimed.
The dispute was referred to the Labour Relations Commissions and a conciliation conference took place. As the parties did not reach agreement the dispute was referred to the Labour Court on the 26th May, 2009, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 29th May, 2009.
UNION'S ARGUMENTS:
3. 1. It is clear that the decision to close the Boning Hall is for financial profit rather than a rationalisation of its overall operation. The few positions offered to members willing to move to Charleville were at substantially reduced rates. The increase in the workforce at the other Dawn Meats sites will be by way of Agency Workers on the minimum wage resulting in substantial gain for the Company.
COMPANY'S ARGUMENTS:
4. 1. Redundancy of 3 weeks' pay per year of service is on par if not greater than that being offered by the Company's competitors. The last redundancy offer by the Company was 3.5 weeks' pay per year of service but that was before the downturn in the economy, with a ceiling of €600 per week applying.
RECOMMENDATION:
The matter before the Court concerns the Company's proposal to close its Boning Hall at Midleton and make 65 employees redundant. The Union sought an enhanced redundancy package and opportunities for future employment within the Company, preferably at its Charleville plant.
Having considered the oral and written submissions of both parties, the Court recommends that the Company should pay 4 weeks pay per year of service inclusive of the statutory redundancy payments, at average earnings, i.e. with no maximum applying.
Furthermore, the Court recommends that in the event of future vacancies becoming available in the Charleville plant that the Company should favourably consider expressions of interest from those employees being made redundant.
The Court so recommends.
Signed on behalf of the Labour Court
Caroline Jenkinson
29th May, 2009.______________________
CON.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.