FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : ULSTER BANK (IRELAND) LIMITED - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Ms Doyle Worker Member: Ms Tanham |
1. Elements to be included the calculation formula for ex-gratia redundancy payment.
BACKGROUND:
2. The case concerns the method for the calculation of severance terms for a group of twelve Porters employed by the Bank in various branches throughout the country after a restructuring programme was announced by the Bank and which later included a compulsory reduction in Porter numbers. The Union is seeking the inclusion of regular and rostered overtime, lunch money, holiday pay and where applicable the Dublin allowance, in the calculation for the ex-gratia redundancy element in the same way as it was included in the calculation for statutory redundancy. Management claim that concession of this claim could lead to a knock-on claims from Clerical staff who have already accepted the severance terms after protracted negotiations.
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 1st November, 2013, in accordance with Section 26(1) of the Industrial Relations Act, 1990.
A Labour Court hearing took place on the 2nd January, 2014.
UNION'S ARGUMENTS:
3. 1.The Porters were not party to the negotiations and therefore could not argue that their posts were unique or that the additional payments, which they have traditionally viewed as part of their basic earnings, should for the purposes of the ex-gratia redundancy calculation be included.
2.Many of the people involved, due to either their age or location will find it difficult to secure alternative employment. Therefore it is necessary for them to secure the maximum financial protection.
COMPANY'S ARGUMENTS:
4. 1.The terms available to the Porters are equivalent to that made available to other staff made redundant.
2. To change the agreed terms for a small group of employees would undermine the entire agreement and could set a precedent.
RECOMMENDATION:
It is clear that in the case of all other groups' allowances, in whatever form, were not included in the calculation of ex-gratia redundancy payments. The Court cannot see any reasonable basis upon which this group should be treated differently. Accordingly, the Court does not recommend concession of that element of the Union’s claim that relates to various allowances.
The position relating to overtime is, however, different. Regular and rostered overtime actually worked is generally regarded as part of normal earnings and cannot be properly classified as an allowance. In that regard it cannot be equated with benefit funding that was payable to other groups and which was not included for the purpose of calculating non-statutory redundancy.
In this case the Court recommends that average regular rostered overtime earning in respect to time actually worked, calculated in each case over the 12 months preceding the redundancy taking effect, should be included in the calculation of ex-gratia redundancy.
For the avoidance of doubt the Court wishes to emphasise that this Recommendation is made having regard to the unique circumstances of this group and it is not intended to have any wider application. Consequently, it should not be cited or relied upon in furtherance of any other claims by this or any other group of Workers.
Signed on behalf of the Labour Court
Kevin Duffy
3rd January, 2014______________________
JFChairman
NOTE
Enquiries concerning this Recommendation should be addressed to John Foley, Court Secretary.