FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : CLONDALKIN PHARMA (CAHILL PRINTERS) (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - DPGU / TEEU DIVISION : Chairman: Ms Jenkinson Employer Member: Ms Cryan Worker Member: Ms Tanham |
1. (1) Redundancy terms & selection (2) Transfer to other plants.
BACKGROUND:
2. This dispute arose from the Company's decision to close its Clonshaugh plant and make some Workers redundant and transfer other Workers to its Glasnevin and Cherry Orchard plants. It 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 19th December, 2011, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 20th December, 2011.
UNION'S ARGUMENTS:
3 1 The Workers have given many years of loyal and dedicated service and are entitled to be appropriately compensated by the Company whether they are being made redundant or transferred.
2 The Company in recent years surrendered to its owner the proceeds of the sale of its East Wall Road site.
3 The Company cannot now claim it is unable to meet the cost of this claim because it gave this money to its owner.
COMPANY'S ARGUMENTS:
4 1 The Company is no longer sustainable as a stand-alone entity.
2 The Company must reduce costs in order to retain customers and protect the remaining Workers.
3. This Company is, accordingly, only in a position to pay statutory redundancy.
RECOMMENDATION:
Having considered the positions of both parties as expressed in their oral and written submissions, the Court recommends that arising from the impending closure of the Clonshaugh Plant that the following redundancy package should be offered on a voluntary basis to staff with a deadline date for applications on Friday 20thJanuary 2012:
2 to 5 years’ service: €3,000 plus statutory redundancy payments
5 to 7 years’ service: €5,000 plus statutory redundancy payments
7 to 10 years’ service: €7,000 plus statutory redundancy payments
10 to 15 years’ service: €10,000 plus statutory redundancy payments
15 to 20 years’ service: €12,500 plus statutory redundancy payments
20 + years’ service: €15,000 plus statutory redundancy payments
The Court notes that twenty employees applied for voluntary redundancy over the last 12 months on redundancy terms on offer by the Company at that time and the employees accepted those terms in full and final settlement of the termination of their employment.
The Union raised concerns about the provision of notice and secondly the protection of employees terms in the event of their transfer to the Glasnevin or Cherry Orchard plants. The Court notes the Company’s commitment to make payments in lieu of notice and also its assurance that any transfer of employees to the Glasnevin or Cherry Orchard plants will be fully encompassed by the European Community (Safeguarding of Employees' Rights on the Transfer of Undertaking) Regulation 1980 (SI 306 of 1980).
The Court does not recommend in favour of the claim for a relocation payment for those transferring as a result of the closure of the Clonshaugh plant.
The Court so recommends.
Signed on behalf of the Labour Court
Caroline Jenkinson
22nd December, 2011______________________
JMcCDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Jonathan McCabe, Court Secretary.