FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : CROWN PAINTS LTD (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION MANDATE DIVISION : Chairman: Mr Duffy Employer Member: Ms Cryan Worker Member: Ms Tanham |
1. Redundancy Terms
BACKGROUND:
2. This case concerns a dispute between Crown Paints Ireland, (represented by IBEC) SIPTU and MANDATE Trade Union in relation to redundancy terms. The Unions' position is that the agreed redundancy terms exist as part of an agreement concluded between the parties in 2010 and that those terms should still apply. Management's position is that due to a decrease in sales and increased levels of competition in the sector, the terms agreed in 2010 are no longer sustainable. The Union rejects management's position.
The dispute was not 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 matter was referred to the Labour Court on 1st August 2012, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 21st August, 2012
UNIONS' ARGUMENT:
3 The current redundancy terms are agreed between the parties. The agreement of 2010 which is in place has already delivered wage cuts and other savings to management. It is unacceptable that management is seeking to further erode the terms of this agreement through applying reduced redundancy terms.
COMPANY'S ARGUMENT:
4 Management cannot sustain the costs of the redundancy terms that were agreed as part of the 2010 agreement. Since the agreement was concluded between the parties there have been significant losses in the Company through reduced sales and increased competition.
RECOMMENDATION:
- It is clear that the agreement concluded between the parties in 2010 provided for revised redundancy terms and for pay reductions. Each of these measures must be regarded as integral provisions of that agreement. The terms of that agreement remain in force as the pay adjustments continue to have effect.
Having regard to the submissions of the parties the Court is not satisfied that there have been changes of such significance in the financial and commercial circumstances of the Company since the conclusion of the 2010 Agreement so as to warrant any modification of its terms .
In these circumstances the Court recommends that the redundancy terms contained in the 2010 agreement should be applied to impending redundancies now in issue.
Signed on behalf of the Labour Court
Kevin Duffy
30th August 2012______________________
AHChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.