LCR20899

FULL RECOMMENDATION

CD/14/356

RECOMMENDATIONNO.LCR20899

INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969

PARTIES :

ACC LOAN MANAGEMENT LTD

- AND -

A WORKER
(REPRESENTED BY SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION)

DIVISION :

Chairman: Mr Duffy
Employer Member: Ms Doyle
Worker Member: Mr Shanahan

SUBJECT:
1. Redundancy Payment

BACKGROUND:

2. This case concerns a dispute between the Company and the worker in relation to a severance package. The worker's position is that he was informed by senior management that his position in the Company would cease and that he should seek alternative employment. The worker also contends that he should have received the appropriate severance payment. Mangement refutes the workers assertions. It contends that a severance payment was inappropriate as the worker could have been given a suitable role within the Company and was informed of this by management.

On the 15th September 2014 the worker referred the matter to the Labour Court in accordance with Section 20(1) of the Industrial Relations Act, 1969 and agreed to be bound by the Court's Recommendation. A Labour Court hearing took place on 3rd December 2014.

The following is the Court's Recommendation:

RECOMMENDATION:

This dispute came before the Court by way of a reference by the Union under section 20(1) of the Industrial Relations Act 1969. It relates to the entitlement of two Claimants to a severance package provided for in a collective agreement concluded between the Company, SIPTU and UNITE. The agreement was concluded in March 2014.

The dispute concerns both the interpretation of the agreement and its application. The agreement makes provision for dealing with disputes of this nature. Under the heading ‘Introduction’the agreement provides: -

“This agreement has been drafted with the assistance of an agreed Facilitator. Any dispute regarding the interpretation or implementation of this agreement will be referred to the Facilitator for guidance”

It is thus clear that in concluding their agreement the parties themselves made provision for the mode by which disputes concerning its interpretation and application should be processed. That did not involve a reference to the Court under s,20(1) of the Industrial Relations Act 1969.

Where parties to a collective agreement have made express provision for resolving disputes arising from either its interpretation or implementation they are bound by what they agreed.

In these circumstances the Court recommends that the parties adhere to the agreement and that the subject matter of this dispute be referred to the Facilitator for guidance in accordance with the agreement.

Signed on behalf of the Labour Court

Kevin Duffy
18th December 2014______________________
AHChairman

NOTE

Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.