FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : PIERSE CONTRACTING LIMITED (REPRESENTED BY CONSTRUCTION INDUSTRY FEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Ms Doyle Worker Member: Mr O'Neill |
1. Redundancy Terms
BACKGROUND:
2. This case concerns a dispute between the Company and Union in relation to the redundancy terms applicable to the General Operative Grade.
The Union is seeking the terms that applied as a result of an Agreement concluded between the parties in similar circumstances in 2008.
Management's position is that the economic downturn has resulted in the Company's inability to sustain redundancy terms in line with the 2008 Agreement. The Comapny further contends that it can only pay the workers their statutory redundancy entitlements.
The dispute was not 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 matter was referred to the Labour Court on 15th June, 2010 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 14th July, 2010.
UNION'S ARGUMENTS:
3 1 The workers ballotted on and accepted the 2008 Redundancy Agreement and remain entitled to those terms if they are to be made redundant.
COMPANY'S ARGUMENTS:
4 1 The Company cannot afford the terms that applied in 2008. The Company will meet its statutory obligations in relations to the redundancies but cannot sustain any additional costs.
RECOMMENDATION:
The issue before the Court concerns the Union’s claim for an enhanced redundancy package for those workers due to be made redundant shortly. The Court has considered the written and oral submissions of the parties.
With regard to the circumstances pertaining to the workers at this point of time in 2010, and taking account of their length of service, the Court recommends that they should be paid 2 weeks pay per year of service, capped at €600 per week, in addition to their statutory redundancy payment. The Court so recommends.
Signed on behalf of the Labour Court
Caroline Jenkinson
21st July 2010______________________
AHDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.