LCR20040

SUBJECT:
1. Redundancy terms.


BACKGROUND:

2. The Dublin Inner City Partnership (DCIP) was established by the Department of the Taoiseach in 1991. The staff employed by the DCIP operated in the context of the implementation of specific Government programmes. When the Board decided to cease operation in June 2010 the four remaining staff were made redundant. An agreement was made with the Staff Trade Union in relation to redundancy for 5.35 weeks per year of service, inclusive of statutory redundancy.

The case before the Court concerns the four care Workers who were employed by DCIP up until their dismissal by reason of redundancy on 30th June 2010. The matter in dispute is the terms which were applied to the severance payment. To date only three weeks redundancy has been paid to the Workers

Management's position is that it was funded by POBAL and FAS and it was forced to cease operation as a result of funding being withdrawn.

The 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 10th January 2011, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 7th April 2011.



UNION'S ARGUMENTS:

3. 1. The Union contends that its member should receive redundancy payments of 5.35 weeks' per year of service, inclusive of statutory redundancy in line with similar Recommendations for those employed in the Community Sector.



MANAGEMENT'S ARGUMENTS:

4. 1. The Board of the DCIP are still in the process of winding down the Company in an orderly manner and do not anticipate having the finance necessary to make the enhanced redundancy payments to the staff.

2. It is POBAL'S position that it is not possible to make enhanced redundancy payments to staff utilizing public/programme funds.



RECOMMENDATION:

Having considered the submissions of both parties the Court is satisfied that a local level agreement was reached providing for redundancy payment of 5.35 weeks per year of service, inclusive of statutory entitlements. The Court is furthere satisfied that this formula is in line with the type of settlement on redundancy payments reached in analogous employments.

In these circumstances the Court is satisfied that the Union's claim is reasonable and it recommends that it be conceded.

The Court notes the the Employer in this case is wholly dependent on external funding. The Court further recommends that the parties jointly approach the funding agency with a view to obtaining the necessary financial support in order to implement this Recommendation.



Signed on behalf of the Labour Court



Kevin Duffy
12th April 2011______________________
MG.Chairman



NOTE

Enquiries concerning this Recommendation should be addressed to Madelon Geoghegan, Court Secretary.