FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : SHOE ZONE (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - MANDATE DIVISION : Chairman: Ms Jenkinson Employer Member: Ms Doyle Worker Member: Mr Shanahan |
1. Redundancy Terms
BACKGROUND:
2. The U.K. based Company operates a chain of 26 retail shoe stores across the country. Its store in Nutgrove Shopping Centre Rathfarmham Dublin closed and the Workers were paid statutory redundancy only, the Union is seeking an additional week's pay per year of service for the affected staff.
The Company state that due to the prevailing economic circumstances, it is not in a financial position to pay.
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 11th June, 2012, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 7th September, 2012.
UNION'S ARGUMENTS:
3. 1. The Company should honour the agreed Redundancy Package arising out of the closure of the Ashbourne Store which was offered to staff as recently as 2011.
2. The Company is making significant savings as a result of the store closure in Nutgrove Shopping Centre rathfarmham. The Union are not aware of any further store closures, thus concession of the claim will have little impact on the Company's finances.
COMPANY'S ARGUMENTS:
4. 1. The Company is incurring substantial losses due to the recession and cannot afford to offer three weeks pay per year of service as before.
2. To further compound matters Revenue have cut the rebate rate from 60% down to 15%, consequently the cost to the Company of statutory terms for the Workers now will equal the cost of the three week pay per year of service before the cut.
RECOMMENDATION:
The matter before the Court concerns the Union’s claim for an ex-gratia payment to staff made redundant when the Company decided to close its store based at Nutgrove Shopping Centre, Rathfarnham in June 2012. The Union sought an additional week’s pay per year of service over and above the statutory redundancy payment, as was paid by the Company and agreed with the Union in similar circumstances in 2011. The Company stated that due to its current trading position and the impact of the reduced rebate, it was no longer in a position to pay a redundancy ex-gratia payment.
Having considered the submissions of both parties the Court recommends that the Company should apply the same ex-gratia terms as previously applied in similar circumstances and therefore the Claimants should be paid a lump sum payment of one week’s pay per year of service, within six weeks of the date of this Recommendation. This is in addition to the statutory redundancy payment already paid.
The Court so recommends.
Signed on behalf of the Labour Court
Caroline Jenkinson
2nd October, 2012______________________
JFDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to John Foley, Court Secretary.