FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : KYLEMORE FOODS GROUP LTD - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Ms Cryan Worker Member: Mr Shanahan |
1. Redundancy Package.
BACKGROUND:
2. This dispute concerns a claim for an ex gratia redundancy payment on behalf of five Workers. This 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 11th August, 2010, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 12th May, 2011.
UNION'S ARGUMENTS:
3 1 The Workers had been employed for up to 31 years.
2 The Company made the Workers redundant so it could replace them with lower paid staff.
3 The norm in the Contract Catering Industry is for an ex-gratia payment in addition to statutory redundancy payment.
EMPLOYER'S ARGUMENTS:
4 1 The Company is operating in a very challenging and competitive indusrty.
2 The Company's sales dramatically in both 2008 and 2009.
3. The Company is not in a position to depart from its practice of paying statutory redundancy only.
RECOMMENDATION:
The dispute before the Court concerns a claim for an exgratia redundancy payment on behalf of 5 claimants made redundant in May 2009 following a review of the organisational structure within the catering operation at UCC and due to the serious commercial and financial challenges facing the Company within that contract.
Having considered the submissions of both sides, in view of the length of service of most of the claimants and taking account of the Company’s financial difficulties, the Court recommends that the company should pay the following exgratia lump sum payments in addition to their statutory entitlements:
�Mr. H. with 25 years service - €19,000
�Ms. T. with 10 years service - €7,000
�Ms. D. with 31 years service - €22,000
�Ms. F. with 18 years service - €13,000
�Ms. D. with 4 years service - €3,000
These payments should be paid within six weeks of the date of this Recommendation.
The Court so recommends.
Signed on behalf of the Labour Court
Caroline Jenkinson
30th May, 2011______________________
JMcCDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Jonathan McCabe, Court Secretary.