FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : KERRY DIOCESAN YOUTH SERVICE (KDYS) (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Hayes Employer Member: Ms Cryan Worker Member: Ms Ni Mhurchu |
1. Redundancy Terms.
BACKGROUND:
2. The Union on behalf of its 4 members is seeking a redundancy package of four weeks pay per year of service plus statutory entitlements. The average length of service of the Workers involved is between 8 and 10 years. KDYS Childcare Service is funded by Pobal and has no resources of its own. It is reluctant to request funds to pay for an ex-gratia redundancy payment as it fears this might jeopardise the availability of funds in the future.
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 26th October 2010, in accordance with Section 26(1) of the Industrial Relations Act, 1990.
A Labour Court hearing took place on the 22nd February, 2012.
UNION'S ARGUMENTS:
3. 1. In July 2010 the Claimants were issued with notices of redundancy, but to ensure that they can be parties to this dispute, have not "signed off" on their RP50 forms, despite the passage of 18 months.
2. The Union gave examples of Labour Court Recommendation to support its claim that enhanced terms can be secured from Pobal.
COMPANY'S ARGUMENTS:
4. 1. Since 2010, 14 staff have become redundant including the 4 Claimants, all received statutory redundance only as the Employer has no funds for ex-gratia payments with 93% of the work coming from Government contracts. The funding contracts exclude provision for any such payments.
2. Paying over and above the statutory entitlements sets a precedent for any future redundancies and jeopardises the sustainability of the KDYS.
RECOMMENDATION:
The Court has carefully considered the submissions of both parties in this case.
The Court sees merit in the Union’s claim for an enhanced severance payment for the four workers involved in this claim. In all the circumstances of this case the Court considers an enhanced severance payment of 2.5 week’s pay per year of service in addition to statutory entitlement a fair and reasonable amount and recommends accordingly.
Taking the nature of the funding of this organisation into account, the Court recommends that the enhanced severance payments be met by a combination of KDYS and Pobal. The Court sees no prospect of the service users being in a position to directly finance the enhanced severance payment recommended.
Accordingly the Court further recommends that the Employer and Union jointly and severally approach Pobal and its relevant funders with a view to securing their participation in the financing of the enhanced redundancy payments.
The Court so recommends.
Signed on behalf of the Labour Court
Brendan Hayes
4th April, 2012______________________
JFDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to John Foley, Court Secretary.