FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : GALCO STEEL LIMITED (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - 31 OPERATIVES (REPRESENTED BY SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION) DIVISION : Chairman: Mr McGee Employer Member: Mr Murphy Worker Member: Mr O'Neill |
1. 1. Redundancy terms; and 2. Night Shift step down - loss of earnings.
BACKGROUND:
2. Galco, which is based in Ballymount, has been at the forefront of the steel galvanizing industry in Ireland for the past 40 years. The Company has felt the effects of the downturn in the Irish economy where the level of business is down 60% compared to last year.
The Company and the Union met on 10th February 2009 and the Company put in place a number of proposals to the Union in order to address the deteriorating business situation. Initially 19 employees were laid off for 6 weeks but on the 18th March 2009 the Company announced that the 19 employees would be made redundant on a "last in first out" basis. It was also proposed to stand down the night shift and personnel were transferred to the Company's rotation shift.
The claims before the Court are for an enhanced redundancy package due to compulsory redundancies and a claim for compensation for loss of earnings due to the cancellation of the 4-day permanent night shift.
The dispute could not be resolved at local level and was the subject of two conciliation conferences under the auspices of the Labour Relations Commission. As agreement was not reached the dispute was referred to the Labour Court on the 7th May, 2009, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 3rd June 2009.
UNION'S ARGUMENTS:
3. 1.The Union maintains that the Company is a highly profitable company and that this situation is in part down to the hard work and dedication the workers have given to the Company.
2.The Union on behalf of the members is seeking a payment of statutory redundancy plus an ex-gratia payment of 4 weeks pay per year of service to sufficiently compensate the Workers who are losing their jobs.
3.The Workers removed from the night shift now have to work five days instead of four days which has completely disrupted their lifestyles and terms and conditions of employment. The Union is seeking at least two years' loss of earnings for those removed from this shift.
COMPANY'S ARGUMENTS:
4. 1.The Company maintains that it could not sustain the costs associated with any package that would be higher than the terms negotiated and recommended for acceptance by SIPTU at conciliation.
2.The 19 individuals originally selected for redundancy were fairly and transparently selected and they subsequently accepted the offer the Company made at conciliation.
3. The compensation package for those removed from the night shift was also recommended for acceptance by the Trade Union and was put forward in order to,firstly, recognise that the individuals moving from night shift to rotating shift will experience a compensatory loss and secondly, to recognise that those who have been on the night shift for longer periods should receive a higher package.
RECOMMENDATION:
Redundancy Compensation:The Court recommends that the proposal made at conciliation should be accepted subject to the amendment that a week's pay for the purpose of the ex-gratia lump sum should be calculated as average weekly earnings.
Night shift - Loss of earnings:The Court recommends that the Workers in question be compensated at the rate of twice the annual loss.
Signed on behalf of the Labour Court
Raymond McGee
8th June 2009______________________
MG.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Madelon Geoghegan, Court Secretary.