FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : WEXFORD CREAMERY - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Ms Cryan Worker Member: Ms Tanham |
1. Company restructuring plans
BACKGROUND:
2. The Company is primarily a cheese processing operation. The Company is currently in a transitional phase moving from being part of a major UK-based PLC (Dairy Crest Group) to a stand-alone operator. The case concerns the Company's decision to reduce its workforce by 23/24 staff with the redundancy terms and method of selection being the issues in dispute. The Company's current offer is 3.4 weeks' pay per year of service, statutory entitlements with a cap of 1.75 years. The Union is seeking at least 6 weeks' pay per year of service with no cap; it cited a number of Labour Court cases to support its arguments. It is also seeking that the Company should look for voluntary redundancies first and then select by a last-in, first-out (LIFO) basis.
The dispute was referred to the Labour Relations Commission (LRC) and a conciliation conference took place. As the parties did not reach agreement, the dispute was referred to the Labour Court on the 27th September, 2011, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 4th January, 2012.
UNION'S ARGUMENTS:
3. 1. The Company has offered redundancy terms which were previously used for voluntary redundancy. This is not the case here where workers will be made redundant on a compulsory basis. As such the compensation should be considerably greater than 4 weeks' pay per year of service.
2. Throughout the entire process the workers have demonstrated their flexibility and cooperation with the Company in respect of fulfilment of orders and production targets.
COMPANY'S ARGUMENTS:
4. 1. The Company believes that its plan (details supplied to the Court) will provide a future for the business but, unfortunately, a consequence will mean the reduction of the workforce by 23/24 employees.
2. The Company believes that its offer is very generous given the current financial and competitive position in which it finds itself. It is not one of the major players in the industry and its pay rates are 15% - 25% out of line with industry norms.
RECOMMENDATION:
Having carefully considered the submissions of the parties the Court recommends as follows:
Selection:
In line with the employer's stated position, the selection should be on a first-in, last-out basis, section by section, subject to the retention of key skills.
Redundancy Package:
Having regard to the compulsory nature of these redundancies the Court recommends that the Company's previous voluntary scheme be modified by increasing the cap to 130 weeks' pay. Subject to that modification, the Company should reinstate its original offer of a redundancy lump sum comprising four weeks' pay per year of service plus statutory entitlements.
Signed on behalf of the Labour Court
Caroline Jenkinson
9th January, 2012______________________
CONChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.