FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : TRIMFOLD LIMITED (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - 18 WORKERS (REPRESENTED BY SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION) DIVISION : Chairman: Mr Hayes Employer Member: Mr Doherty Worker Member: Ms Ni Mhurchu |
1. Redundancies.
BACKGROUND:
2. The Company is involved in the production of envelopes and is based in Trim, Co. Meath. Production has fallen in recent times and the Company has had to make 17 workers redundant. The dispute concerns the redundancy terms and the selection process - the Company has offered statutory redundancy only whereas the Union is seeking 4.5 weeks' pay per year of service. Other issues involve a 39-hour week and tea breaks. The Company currently operates a 40-hour week plus 6 extra days' annual leave in lieu of working a 39-hour week. The Company wants to eliminate this practise and introduce a 39-hour week with wages calculated on a 40-hour week basis. The Company is seeking to eliminate two paid tea-breaks of 20 and 30 minutes each day. The Union has rejected both proposals.
The dispute was referred to the Labour Relations Commission (LRC) and a conciliation conference took place. As the parties did not reach agreement, 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 9th March, 2010.
UNION'S ARGUMENTS:
3. 1. An agreement in 2007 provided for redundancy terms of 4.5 weeks' pay per year of service and the Union believes that the same terms should be on offer in the present circumstances.
2. The Union has proposed that employees should work a 39-hour week for 26 weeks and a 40-hour week for the remaining 26 weeks each year. That would give the Company three extra days' production while reducing the additional leave from 6 days to 3 days per annum.
COMPANY'S ARGUMENTS:
4. 1. The Company's financial situation has deteriorated seriously recently and it cannot afford to pay more than statutory redundancy.
2. Reverting to a 39-hour week would eliminate the cost associated with the 6 annual leave days - approximately €20,000 per year. Removing the paid tea-breaks would save the Company €33,000 per annum.
RECOMMENDATION:
The Court has carefully considered the oral and written submissions of both parties in this case and recommends as follows:
Redundancy Terms:
The Court notes that a precedent exists within the Company for a redundancy package of 4.5 weeks pay per year of service inclusive of statutory entitlement. The Court recommends that the package currently on offer be brought in line with this precedent.
Other Issues:
The Court is of the view that the issues of the 39-hour week, and the arrangements for breaks for shift workers, would benefit from further discussions between the parties. Accordingly, the Court recommends that the parties return to direct discussions on these issues, if necessary with assistance of the Labour Relations Commission, with a view to reaching an agreed solution. If the parties fail to reach agreement between themselves on these issues, the Court will make a final Recommendation if so requested.
Signed on behalf of the Labour Court
Brendan Hayes
25th March 2010.______________________
CON.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.