FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : LOUGHNANE CONCRETE LIMITED - AND - A GROUP OF WORKERS (REPRESENTED BY SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION) DIVISION : Chairman: Mr Hayes Employer Member: Mr Murphy Worker Member: Mr O'Neill |
1. Claim For Ex-Gratia Redundancy Payment
BACKGROUND:
2. The issue before the Court concerns a claim by the Union on behalf of three of its members for an ex-gratia redundancy payment. Due to the effects of the economic downturn in 2009, the Company advised the Union of the need for changes in work practice and redundancies. Between May 2009 and the end of that year 9 employees were made redundant. The three workers concerned here were compulsory redundancies, while the other six were voluntary. It is the Union's claim that its members who were forced to leave their employment should receive ex-gratia payments in addition to their statutory lump sum.
The issue could not be resolved at local level. The Union referred a complaint to the Labour Court on the 2nd February, 2010, in accordance with Section 20(1) of the Industrial Relations Act, 1969. The Union to be bound by the recommendation of the Court. A Labour Court hearing took place on the 6th May, 2010.
UNION'S ARGUMENTS:
3. 1 The workers were made redundant in September, 2009. They recieved statutory redundancy, the same as those workers who volunteered for redundancy. The Union's claim is that those forced out on a compulsory basis should receive terms greater than those expressed by statute.
2 Within the Industry there have unfortunatly been many redundancies. Redundancy terms in comparable employments have ranged from 4 weeks per year of service inclusive of statutory entitlements to 4.5 weeks per year of service plus statutory entitlements.
COMPANY'S ARGUMENTS:
4. 1 Due to the Company's financial position, it is not in a position to pay anything other than statutory redundancy. With the retirement age on redundancy being lifted, the Company has had to pay long term employees substantial redundancies.
2 The vast majority of comparators of the Company, and throughout the industry, have only been obliged to pay statutory redundancy
RECOMMENDATION:
The Court has carefully considered the submissions of both parties and recommends that the employer pay a week's pay per year of service to the Claimants in addition to their statutory entitlements in full and final settlement of this claim.
The Court so recommends.
Signed on behalf of the Labour Court
Brendan Hayes
21st May, 2010______________________
DNDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to David P Noonan, Court Secretary.