FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : GLANBIA - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Ms Cryan Worker Member: Ms Ni Mhurchu |
1. Redundancy Terms - Wind Down Payment.
BACKGROUND:
2. The case before the Court concerns the closure of the manufacturing plant at Inch, Gory Co. Wexford, a dispute arose between the Employer and the Union concerning a wind down payment for employees.
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 25th June 2012 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 19th July 2012.
UNION'S ARGUMENTS:
3. 1. The plant at Inch, Gorey is a long established dairy manufacturing facility and is part of the Glanbia Consumer Foods division that employs more than 600 workers in Ireland. Glanbia Plc is part of a very profitable multi-national organisation.
2. The decision to close the manufacturing plant was not based on poor production standards or increased costs assiciated with raw materials, nor was it a decsion based upon the need to reduce costs at the plant, it is a commercial transaction between two companies that unfortunatley will result in the complete closure of the plant at Inch with the loss of over 50 jobs and the transfer of the franchise back to France.
3. While the terms of the redundancy are agreed, the Union seek a wind down payment of €10,000 per employee for co-operation with an orderly wind down of the plant which is due to close in September 2012; for the full coperation of staff and transfer of the product in a timely fashion from the plant to France.
EMPLOYER'S ARGUMENTS:
4. 1. The decision to close the plant at Inch, Gorey was made following a strategic review of its Consumer Products business and Glanbia decided to sell a franchise it held for many years, back to its French company.
2. The Company regrets the loss of the jobs at Inch, Gorey and has agreed very competitive redundancy terms to the employees who will loss their jobs and consequently can see no need to pay over and above the terms simply on the basis of a site closure.
3. However, in an effort to resolve the dispute the Company decided to offer a goodwill payment in order to address the Union's claim. This offer was rejected and therefore withdrawn.
RECOMMENDATION:
The issue before the Court arose in the context of the closure of the Company’s manufacturing site at Inch, Gorey, Co.Wexford. It is accepted by both parties that the redundancy terms as agreed in 2009 will apply to the workers involved in the closure. The Union sought a payment to reflect the co-operation of the workers involved in the close down process. At conciliation talks the Company offered to pay a goodwill payment for this co-operation, which was withdrawn when rejected by the Union.
Given the particular circumstances that arise in the closure of the plant in Gorey, the Court recommends that the Company should reinstate its offer and the sum of €3,000 should be paid to each employee in full and final settlement of the claim.
The Court so recommends.
Signed on behalf of the Labour Court
Caroline Jenkinson
27th July 2012______________________
AHDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.