FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : STENA LINE LTD - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION) DIVISION : Chairman: Mr Hayes Employer Member: Ms Doyle Worker Member: Mr Shanahan |
1. Jobs, redundancy & severance terms.
BACKGROUND:
2. This dispute concerns the redundancy terms on offer to Workers who are to lose their jobs due to the Company's decision to make changes to the way it operates its seasonal service between Dun Laoghaire and Holyhead. The Union referred this case to the Labour Court on 6th December, 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 11th January, 2012.
UNION'S ARGUMENTS:
3. 1. These compulsory redundancies are part of the outsourcing agenda of the Company.
2. The Company is denying the Workers the opportunity for permanent part-time work at their current place of employment.
3.The Workers are losing their permanent, defined-benefit pensionable employment, with little prospect of finding alternative employment.
COMPANY'S ARGUMENTS:
4. 1. The Company is committed to operating a viable seasonal service between Holyhead and Dun Loaghaire.
2. The Company cannot offer a viable seasonal service without removing all fixed costs during the winter lay-by period.
3.The Company, accordingly, has no option but to make the Workers redundant on the terms outlined.
RECOMMENDATION:
The Court has carefully considered the submissions of both parties in this case.
It is clear that the Company, for commercial and trading reasons, has decided to close the year round High Speed Ferry service and replace it with a new seasonal service commencing in April 2012. In an unrelated development the Company has also decided to restructure its operations support services and concentrate them in a reduced number of locations resulting in the elimination of an additional number of jobs in Dun Laoghaire. The issues before the Court arise out of these developments.
In all the circumstance of the case the Court recommends that the dispute between the parties be settled on the following basis: -
- 1. That the Company improve the terms of its redundancy proposals by increasing the Republic Of Ireland Special Payment amount from €650 per year of service, pro rata for part time workers, to €1050 per year of service, pro rata for part time workers.
2. That the Company confirm in writing to the Union its willingness, as advised to the Court in the Course of the Hearing, to offer the displaced staff in Dun Laoghaire first call on the jobs, whether directly employed or through a sub-contracting arrangement, that will be created later this year when the seasonal High Speed Ferry service commences.
- 3. That the Company engage with the union on the terms and conditions of employment that will attach to those jobs when it finalises it thinking in relation to this matter.
- 4. That the Union accept the revised offer in full and final settlement of the issues in dispute.
Signed on behalf of the Labour Court
Brendan Hayes
16th January, 2012______________________
JMcCDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Jonathan McCabe, Court Secretary.