FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 13(9), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : DIVINE WORD MISSIONARIES (REPRESENTED BY IRISH BUSINESS AND EMPLOYER'S CONFEDERATION) - AND - A WORKER (REPRESENTED BY SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION) DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Murphy Worker Member: Mr Shanahan |
1. Appeal of Recommendation of a Rights Commissioner r-072725-ir-08.
BACKGROUND:
2. The Divine Word Magazine began publication in Ireland in 1953 and by the mid-1960s had a readership of around 90,000 copies per issue. However, by 2007 this circulation had dropped to around 17,000 copies and as this trend looked set to continue, an official notice of redundancy was served on staff and became effective on
1st December, 2008. The Worker was offered her statutory redundancy entitlement only but she and her Union are claiming that an enhanced package would be more appropriate in the circumstances.
The matter was referred to a Rights Commissioner for investigation and recommendation. On the 30th April, 2009, the Rights Commissioner issued his Recommendation as follows:
"It is normal and accepted practice that, except in the case of a liquidation that leaves an employer with no resources, that an employer in a redundancy situation will pay an additional or "ex-gratia" payment to a redundant employee in addition to statutory entitlements....... There is Considerable merit in the claim and it is conceded. I recommend that the employer pay to the claimant a severance or redundancy payment of 2 weeks pay per year of service in addition to her statutory entitlement as a full and final settlement of the matter"
On the 14th May, 2009 the Employer appealed the Rights Commissioners Recommendation to the Labour Court in accordance with Section 13(9) of the Industrial Relations Act 1969. A Labour Court hearing took place on the 10th February, 2011.
UNION'S ARGUMENTS:
3. 1. The Worker has given 43 years' loyal service to the Divine Word Missionaries in Donamon and would have expected to work to her normal retirement age.
2. Due to the current economic climate the Worker will find it very difficult to find suitable alternative employment in the area.
COMPANY'S ARGUMENTS:
4. 1. The Employer has accumulated losses of over €500,000 in the last five years and as a result only statutory entitlements can be offered to the Employee.
2. The Employer also paid into a pension scheme for the Worker at a rate of €30.00 per week and this has the potential to pay her a substantial lump sum on maturity.
DECISION:
The matter before the Court concerns a claim for an enhanced redundancy payment on behalf of one Claimant who had been employed by the Employer for 43 years.
Having considered the oral and written submissions of both parties the Court is of the view that in all the particular circumstances of this case the employer should pay the Claimant the sum of €75,000 inclusive of her statutory redundancy entitlements in full and final settlement of her claim before the Court.
The Court so recommends.
Signed on behalf of the Labour Court
Caroline Jenkinson
28th February 2011______________________
JFDeputy Chairman
NOTE
Enquiries concerning this Decision should be addressed to John Foley, Court Secretary.