FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : DUNE SHOES IRELAND LIMITED (PREVIOUSLY ACQUIRED FROM THE SHOE STUDIO IRELAND LIMITED (REPRESENTED BY EUGENE F. COLLINS SOLICITORS) - AND - MANDATE DIVISION : Chairman: Mr Hayes Employer Member: Mr Murphy Worker Member: Mr Nash |
1. Redundancy terms
BACKGROUND:
2. The Shoe Studio Ireland Limited, which operated concessions in various stores throughout the country, was acquired by Dune Shoes Ireland Limited in March 2009. Dune Shoes Ireland Limited is part of the Dune Group, a major British footwear retailer. In May 2009, as a result of the ending of a concession agreement with a major British department store, it was announced that several hundred employees in both Britain and Ireland would be made redundant. This dispute concerns a claim by the Union, on behalf of c.15 Workers, for an appropriate redundancy settlement.
This 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 1st September, 2009, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 25th February, 2010, the earliest date suitable to the parties.
UNION'S ARGUMENTS:
3. 1. The Company has a moral obligation to provide a fair and generous redundancy package.
2. Given the significant accumulated profits generated during more favourable economic times, it is difficult to accept the Company's claim that it can only make statutory redundancy payments.
3.The Court must ignore the Company's claim that it cannot treat its Irish Workers more generously than its British Workers.
COMPANY'S ARGUMENTS:
4. 1. The Company has been badly affected by the downturn in the economy.
2. The Company is not in a position to make redundancy payments in excess of statutory requirements.
3.Concession of this claim would result in the Company treating its Irish Workers more generously than its British Workers.
RECOMMENDATION:
Taking into account the financial condition of the Company and the unusual circumstances of this case, the Court is of the view that a severance payment of four weeks' pay per year of service to each of the Workers concerned (inclusive of statutory redundancy entitlements) would constitute a fair and reasonable settlement and recommends accordingly.
Signed on behalf of the Labour Court
Brendan Hayes
5th March, 2010______________________
JMcCDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Jonathan McCabe, Court Secretary.