FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : M & P SALES & MARKETING (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - MANDATE DIVISION : Chairman: Mr Duffy Employer Member: Ms Cryan Worker Member: Mr O'Neill |
1. Redundancy Terms
BACKGROUND:
2. This dispute concerns the redundancy terms which were offered to the Workers. As agreement was not reached, the dispute was referred to the Labour Court on the 10th September, 2010, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 10th December, 2010, the earliest date suitable to the parties.
UNION'S ARGUMENTS:
3. 1. The Workers were employees of SHS Group Limited.
2. Other employees of SHS Group Limited were offered a redundancy package of statutory plus four weeks per year of service.
3.The Workers should receive the same redundancy package as their colleagues.
COMPANY'S ARGUMENTS:
4. 1. Although it is part of SHS Group Limited, M & P Sales & Marketing Limited is a seperate legal entity.
2.The Workers are employees of M & P Sales & Marketing Limited.
.
3.The Workers were offered M & P Sales & Marketing Limited's custom and practice redundancy package of statutory plus two weeks per year of service.
RECOMMENDATION:
While there are seperate legal entities within the overall group it is clear that the business is so organised as to create a single trading unit with a single workforce. Moreover, when the offer of voluntary redundancies was made it was made in the name of the business unit and it did not distinguish between employees based on the seperate legal entities that exist within the overall group.
In these circumstances it would be unfair from an industrial relations perspective to apply different terms to workers who are similarily affected by the redundancies.
In these circumstances the Court recommends concession of the Union's claim.
Signed on behalf of the Labour Court
Kevin Duffy
16th December, 2010______________________
JMcCChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Jonathan McCabe, Court Secretary.