FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : WOODFAB TIMBER LTD (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - A WORKER (REPRESENTED BY SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION) DIVISION : Chairman: Mr Hayes Employer Member: Ms Cryan Worker Member: Ms Ni Mhurchu |
1. Enhanced Redundancy
BACKGROUND:
2. This case concerns a dispute between the Company and Union in relation to a claim for enhanced redundancy terms. The Union is seeking that the worker be paid six weeks pay per year of service inclusive of statutory entitlements. The Company contends that the business is not profitable and that all redundancy's have been offered and paid at statutory levels only.
It further contends that due to trading difficulties and increasing losses the Company may well have to cease the log processing area of its business.
The worker referred his claim to the Labour Court on 4th February, 2011 in accordance with Section 20(1) of the Industrial Relations Act, 1969 and agreed to be bound by the Court's Recommendation. A Labour Court hearing took place on 15th August, 2011.
UNION'S ARGUMENTS:
3 1 There are many subsidiaries in operation within the Company and on the whole the organisation is extremely profitable. The Company can easily afford to pay enhanced redundancies to the worker who has given long and loyal service.
2 The claimant accepted statutory redundancy as a last resort after a period of lay off. He had no option but to do this as he no longer had any entitlement to Social Welfare payments.
COMPANY ARGUMENTS:
4 1 The Company has made profits but the workers in this case are involved in the log processing area of the operation which is continually loss making. In addition, previous fires at the premises and the associated costs of rebuilding and reorganisation has placed considerable doubt over the future viabilty of that area of the business.
2 The Company is working towards rebuilding and re-employing in the future those who have been made redundant. Unfortunately the Company is currently in need of assistance from the bank and if costs continue to rise, it may not be worth re-starting that area of the business.
RECOMMENDATION:
Having carefully considered the extensive oral, written and supplementary submissions from both parties the Court recommends that the Company increase its offer to the worker concerned to three weeks pay per year of service inclusive of statutory entitlement in full and final settlement of this dispute.
Signed on behalf of the Labour Court
Brendan Hayes
14 October 2011______________________
AHDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.