FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : DONEGAL LOCAL DEVELOPMENT COMPANY LIMITED (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Murphy Worker Member: Mr O'Neill |
1. Redundancy Terms
BACKGROUND:
2. The Company was set up in 1995 to deliver EU and Government-funded local development supports programmes throughout Donegal. Due to cutbacks in funding short-time work was introduced in July, 2008. In February, 2009, management proposed a restructuring proposal which included three redundancies. The three workers, chosen on a last-in first-out (LIFO) basis, were paid statutory redundancy but the Union is seeking an additional payment of 3.35 weeks' pay per year of service.
The dispute was referred to the Labour Relations Commission and a conciliation conference took place. As the parties did not reach agreement the dispute was referred to the Labour Court on the 3rd April, 2009, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 20th May, 2009, in Donegal.
UNION'S ARGUMENTS:
3. 1. Management did not seek volunteers for the redundancies but instead made the three workers redundant on a LIFO basis. The Union had made a number of suggestions which could have resulted in no redundancies being necessary but they were rejected by management.
COMPANY'S ARGUMENTS:
4. 1. The Company acted in good faith in order to minimise cutbacks to the Company and its staff. It has made every effort to seek enhanced redundancy payment for the workers concerned but to no avail and it cannot afford to pay more that it has already .
RECOMMENDATION:
The Union sought an enhanced redundancy payment for three employees made redundant in March 2009. The organisation submitted that the redundancies were necessary due to serious cutbacks from its funding authorities and that it had been unable to secure any funding for an ex-gratia payment. The Court notes that the organisation has also made a number of other savings through reductions in running costs.
Having considered the oral and written submissions of both parties, the Court recommends that the value of each person’s rebate from the statutory redundancy payment should be paid as an ex-gratia payment to the three claimants made redundant.
The Court so recommends.
Signed on behalf of the Labour Court
Caroline Jenkinson
8th June, 2009______________________
CONDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.