FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : AMBER KILKENNY WOMEN'S REFUGE LIMITED TRADING AS AMBER KILKENNY WOMEN'S REFUGE PROJECT - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Murphy Worker Member: Mr Shanahan |
1. Redundancy terms.
BACKGROUND:
2. The Company has been providing refuge services since 1999 for victims of domestic violence. It is funded primarily by the HSE Carlow/Kilkenny Area Children and Families Department and to a lesser extent by Kilkenny County Council Housing and Homelessness Services. Additional income is generated through fundraising, donations, accommodation charges and one-off grants. Difficulties arose in 2011 due to a significant reduction in funding, certain cost-saving initiatives were introduced. These initiatives proved inadequate and in January 2012 the Company proposed the introduction of redundancy after the Company commissioned a review of its financial position by a firm of Social and Economic Consultants. At Conciliation an agreement was reached on an overall restructuring plan, therefore the only issue before the Labour Court concerns the quantum of the enhanced ex-gratia payment for nine 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 19th December 2012, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 16th April, 2013.
UNION'S ARGUMENTS:
3. 1. The Union is seeking three week's pay per year of service ex-gratia payment plus statutory in line with the redundancy terms of the Community and Voluntary Sector.
COMPANY'S ARGUMENTS:
4. 1. At no time were staff not informed of the financial situation of the Company. It is envisaged that in years to come the Company will be in a position to employ again.
2. The funds required for an ex-gratia payment were sought from the sponsors but were not forthcoming and there is nowhere left for the Company to turn.
RECOMMENDATION:
The issue before the Court is a claim for enhanced redundancy payments for nine employees made redundant in July 2012. The Refuge is funded primarily by HSE and also by Kilkenny County Council. Due to a reduction in funding, Management implemented a cost-cutting exercise which resulted in a number of employees being made redundant. Management stated to the Court that it had no funds to pay an ex-gratia redundancy payment.
Having considered the oral and written submissions of both parties, the Court recommends that an ex-gratia payment of three weeks' pay per year of service should be paid to those made redundant in July 2012. The Court notes that due to the financial circumstances of the organisation it does not have the funds to pay this amount out of its own resources and therefore the Court recommends that the parties should jointly cooperate in seeking the necessary funds from the funding agencies to discharge the amount recommended.
The Court so recommends.
Signed on behalf of the Labour Court
Caroline Jenkinson
14th June, 2013______________________
JFDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to John Foley, Court Secretary.