FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : ARAMARK IRELAND LIMITED TRADING AS ARAMARK FOOD SERVICES (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Hayes Employer Member: Mr Murphy Worker Member: Mr Shanahan |
1. Enhanced redundancy terms.
BACKGROUND:
2. This case concerns a dispute between SIPTU and the Company in relation to a claim for enhanced redundancy. The Company provides catering facilities at the University of Limerick and the three Claimants who have been made redundant are seeking four weeks' pay per year of service in excess of statutory entitlements. The Company contends that the redundancies were necessitated by a significant downturn in business and that the workers were paid their statutory entitlements.
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 14th February 2012 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 7th June, 2012.
UNION ARGUMENTS:
3 1 The workers in question have shown great loyalty to the Company over many years.
2 The alternative positions that were offered to them were unsuitable and could not be accepted.
3 The worker's claim for enhanced redundancy terms is in line with comparable employments within the sector.
COMPANY ARGUMENTS:
4 1 There has been a significant downturn in business at the University of Limerick site due to increased competition from other businesses.
2 The Company had attempted to find alternative employment for the workers which they did not accept.
3 The claim for enhanced redundancy terms is unsustainable and cannot be paid by the Company in the current economic climate.
RECOMMENDATION:
The Court has carefully considered the submissions of both parties to this dispute. Taking all relevant factors into account the Court recommends a severance payment of two weeks' pay per year of service in addition to the statutory entitlement of each of the workers involved.
Signed on behalf of the Labour Court
Brendan Hayes
17th July 2012______________________
AHDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.