FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : SOUTH KERRY DEVELOPMENT PARTNERSHIP LIMITED (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Hayes Employer Member: Mr Murphy Worker Member: Mr McCarthy |
1. Claim for ex-gratia redundancy terms.
BACKGROUND:
2. This dispute concerns a claim for ex-gratia redundancy terms of three weeks’ pay per year of service for two redundant staff. 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 14th October, 2014 in accordance with Section 26(1) of the Industrial Relations Act, 1990.
A Labour Court hearing took place on the 13th January 2015.
UNION’S ARGUMENTS:
3. 1. The two Workers were employed as Rural Development Officers with the South Kerry Development Partnership Limited (SKDP). This was funded by the Leader Programme.
2. The two Workers each had over 18 years’ experience. Their duties included assisting individuals in the start-up of local enterprises and businesses, delivering assistance to the rural community through local development and providing confidential supports and information for low income farm families.
EMPLOYER'S ARGUMENTS:
4. 1. In 2014 the Department of Environment and Local Government imposed on SKDP a substantial budget cut of 20% in Leader funding. Due to the decrease in funding, SKDP had to issue redundancy notices to two of its staff.
2. The Company does not have the funding available to offset the redundancies that arose when the matter came to its attention in 2014. The Company did seek redundancy payments from its funder but was unable to obtain cost of the additional funding from the Department.
RECOMMENDATION:
Having carefully considered the submissions of both parties to this dispute the Court recommends that Management increase the severance terms paid to the workers concerned to 3.35 weeks’ pay per year of service in addition to statutory entitlements.
The Court notes that the Partnership Company does not have the finances at present to meet the cost of this Recommendation. The Court further notes that the Partnership Company is wholly dependent on funding from State Agencies to meet its operational costs.
In those circumstances the Court recommends that the parties, jointly and severally, approach the funding Agencies with a view to securing the funding necessary to meet the cost of the recommended severance payments.
The Court so recommends.
Signed on behalf of the Labour Court
Brendan Hayes
CR______________________
10th March, 2015.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran Roche, Court Secretary.