FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : RPS ENGINEERING SERVICES (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - 11 CRAFT MAINTENANCE WORKERS (REPRESENTED BY TECHNICAL, ENGINEERING AND ELECTRICAL UNION) DIVISION : Chairman: Mr McGee Employer Member: Mr Doherty Worker Member: Ms Ni Mhurchu |
1. Redundancy terms.
BACKGROUND:
2. The Company is part of the R.P.S. Group and is an engineering support services company operating in the Irish market. It has offices in Dublin, Cork, Limerick and Waterford. The Company has supplied maintenance personnel to Waterford Crystal for 14 years but, following the Waterford Crystal business going into receivership in January, 2009, it has decided to make its 11 employees in the Waterford office redundant. The Company has offered statutory redundancy only but the Union is seeking an enhanced redundancy package.
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 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 11th June, 2009, in Kilkenny.
UNION'S ARGUMENTS:
3. 1. The R.P.S. Group is a major multinational company which has made substantial profits over the years from its Irish subsidiaries, not least as a result of the workers' contribution in Waterford Crystal.
2. It is not true that it is Company policy to pay statutory redundancy only. There are a number of examples where the Company has paid more.
COMPANY'S ARGUMENTS:
4. 1. It is the policy of the Company to pay statutory redundancy only to staff. Paying any more would be a huge cost to the Company and put the business and staff at risk.
2. The Company was a considerable amount of money by Waterford Crystal at the time it went into receivership. As an unsecured creditor, the Company does not expect to receive any of this money.
RECOMMENDATION:
In all of the circumstances of this case, and having considered the submissions of the parties, the Court recommends that the Company pay severance terms of two weeks' average pay per year of service in addition to statutory redundancy payments.
Signed on behalf of the Labour Court
Raymond McGee
24th June, 2009.______________________
CON.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.