FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : NEWTOWN SCHOOL (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION IRISH MUNICIPAL, PUBLIC AND CIVIL TRADE UNION DIVISION : Chairman: Mr Duffy Employer Member: Ms Doyle Worker Member: Ms Ni Mhurchu |
1. Redundancy
BACKGROUND:
2. This dispute concerns the Board of Managements decision to introduce compulsory redundancies. This 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 24thApril 2013, in accordance with Section 26(1) of the Industrial Relations Act, 1990.
A Labour Court hearing took place on the 9thJuly 2013.
UNION’S ARGUMENTS:
3. 1. In June 2009, SIPTU reached agreement with the school for 5 voluntary redundancies. This represented a 14% cut in support staff. In June 2012 management informed staff of the need for further cost cutting measures, including further redundancies.
2. On the 26thSeptember 2012 the Union met with Management and were told there would be cuts across the board and there was no target, expect a financial one. On the 24thOctober SIPTU told Management 4 members were interested in voluntary redundancy. At no stage did Management indicate that compulsory redundancies were being considered.
3. In January 2013 SIPTU and IMPACT were advised that the school Management had issued compulsory redundancy notices to two members of staff and last in first out was not being used to select the candidates. The Unions have put forward a number of proposals including short term work, job sharing and cutting external contracts and believe there is no need for compulsory redundancies.
EMPLOYER'S ARGUMENTS:
4. 1. The school is a registered charity and is a non-for-profit organisation. In 2009 certain grants were withdrawn. This resulted in a loss of approximately €100,000 in funding. The pupil teacher ratio has progressively increased from 18:1 to 23:1 equivalent to a loss of 3.5 teacher posts or €190,000 and Career Guidance/Counsellor supports have being removed resulting in a further loss of approximately €55,000.
2. Cost savings introduced in 2009 addressed part of the loss of grants and the initial drop in student numbers from 350 to 331 in 2010/11. Since then there has being a further loss of 44 students. This directly impacts the base income of the school with a loss of approximately €500,000 since 2010/11.
3. The cost savings put forward by the Unions are not payroll savings.
RECOMMENDATION:
The Court believes that the parties should make one final effort to avoid redundancies being implemented on a compulsory basis. The Court recommends that the School should seek further voluntary redundancies. In the event of suitable positions arising as a result of further volunteers emerging those earmarked for compulsory redundancy should be offered retraining and redeployment into the roles becoming vacant.
Having regard to the urgency of the situation the Court recommends that this approach be explored immediately with a view to final agreement being reached by mid- August 2013. If this approach does not produce the result envisaged by this Recommendation the matter should be referred back to the Court, which will deal with the matter as one of urgency
Signed on behalf of the Labour Court
Kevin Duffy
CR______________________
1st August, 2013Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran Roche, Court Secretary.