FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : OLHAUSENS LTD - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Doherty Worker Member: Ms Ni Mhurchu |
1. Claim for ex-gratia redundancy payment.
BACKGROUND:
2. The Company produces and supplies pork meat products and is based in Dublin. In January 2009 the Company engaged in a consultation process with the Union on its restructuring programme. The outcome of that process was that there was an acceptance of the Company's inability to pay more than the statutory redundancy to those employees who were being made redundant. However the Union position was that the issue of statutory rates only would be addressed when the final list of names was agreed.
The claim before the Court is for an ex-gratia payment for five named employees who have given loyal and dedicated service ranging from nine to thirty five years.
The 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 23rd March, 2009, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 8th May, 2009.
UNION'S ARGUMENTS:
3. 1. The Union maintains that the Company have made ongoing savings due to the recent reduction of 14 employees without appropriate work permits.
2. The Union contends that the Directors of the Company are on record as stating that the business has resumed in full (contained in a Sunday newspaper).
3. The Union also contends that the Company made a profit in 2008 compared to a loss in the previous year when there were no redundancies.
COMPANY'S ARGUMENTS:
4. 1.The Company maintains that it suffered a significant net loss for the financial year ending on the 31st March 2009.
2.The impact of that loss was such that the Company had to negotiate with its bankers to provide additional support to keep the Company going. The Bank have now become involved in the detail of the operations of the Company to oversee that all is being done to ensure the Company's survival.
3. The implementation of the cost savings programme has put the Company on a sounder footing to face the challenging year ahead. Survival can be achieved with a lower cost base and better margin achievement.
RECOMMENDATION:
The Union submitted a claim for an ex-gratia payment on behalf of five workers made redundant by the Company in February 2009. The Company submitted that it was not in a financial position to concede the Union's claim due to its severe economic situation, which necessitated the redundancies and other cost saving measures.
Having examined the oral and written submissions of both parties, the Court recommends that the Company should pay an ex-gratia payment of €500 per year of service to each of the five claimants involved. Furthermore, as there are outstanding payments due to the Company from the Department of Agriculture and the Department of Enterprise Trade and Employment, the Court recommends that the ex-gratia payment should be deferred until the 1st August 2009 and paid on that date.
The Court so recommends.
Signed on behalf of the Labour Court
Caroline Jenkinson
15th May, 2009.______________________
MG.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Madelon Geoghegan, Court Secretary.