FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : OATFIELD CONFECTIONERY LTD (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Doherty Worker Member: Mr Nash |
1. Selection and terms of redundancy package.
BACKGROUND:
2. This dispute concerns the selection for and terms of a redundancy package. The Union is seeking four weeks' pay per year of service inclusive of statutory redundancy entitlements, and an ex-gratia payment of €1,000 for employees with less than two years' service. The Company is using the 'Last In First Out' criteria to decide who is to be made redundant and will only make statutory redundancy payments.
The Union, on behalf of the Workers, referred this case to the Labour Court on 11th August, 2008, in accordance with Section 20(1) of the Industrial Relations Act, 1969, and agreed to be bound by the Court's Recommendation. A Labour Court hearing took place on 17th February, 2010.
UNION'S ARGUMENTS:
3. 1. The Company announced these collective redundancies without first consulting with the Union in relation to the selection criteria for redundancy.
2. The Company should have offered a voluntary redundancy package before implementing compulsorary redundancies on a 'Last In First Out' basis.
3.The redundancy package offered by the Company is low in comparison with those offered by other local companies.
COMPANY'S ARGUMENTS:
4. 1. The Company has always applied 'Last In First Out' as the criterion for selection in redundancy programmes.
2. The Company is not in a financial position to make any ex-gratia payments.
3.Concession of this claim would endanger the remaining jobs in the Company.
RECOMMENDATION:
Having regard to all the circumstances of the case the Court recommends that the company reinstate its offer of three weeks pay per year of service, inclusive of statutory terms and that this be accepted by the Union.
The Court further recommends that those who do not have a statutory entitlement receive an ex-gratia payment of €1,000.
Signed on behalf of the Labour Court
Kevin Duffy
1st March, 2010______________________
Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Jonathan McCabe, Court Secretary.