FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : IRISH LOCAL DEVELOPMENT NETWORK - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION IRISH MUNICIPAL, PUBLIC AND CIVIL TRADE UNION DIVISION : Chairman: Mr Foley Employer Member: Ms Doyle Worker Member: Ms Tanham |
1. Hearing Arising From Lcr 20890
BACKGROUND:
2. This dispute arises from the impact of developments in programmes delivered by Local Development Companies and specifically the fact that 55 redundancies have occurred to date as a result of development of the SICAP programme and further redundancies are likely as a result of the implementation of the SICAP Programme and developments in the LEADER Programme. The matter before the Court relates to a dispute as regards the redundancy terms to apply to staff made redundant to date and into the future in the Local Development Companies as a result of the developments in the programmes delivered by those companies.
The Court has previously considered the dispute between the parties regarding issues arising from changes in the mode of delivering programmes undertaken by the Local Development Companies. The Court in its earlier Recommendation (LCR20890) recommended that a forum should be set up to deal with employment related matters affecting the workers employed in Local Development Companies. The Court notes that this forum did come into being and that the de-facto decision makers in these matters from the point of view of policy and funding did participate in that forum in an observing capacity.
The Court understands that the forum did not resolve issues relating to the redundancy terms to apply to affected staff and that is the matter before the Court. The Court has not, for reasons advised to the Court, had the benefit of the view of the de-facto decision makers in the matter before the Court.
The Court understands that employees of Local Development Companies made redundant as a result of implementation of the SICAP Programme are offered redundancy terms of 1.5 week’s pay per year of service in addition to their statutory entitlements with an overall ‘cap’ of €40,000 to apply to the value of the redundancy amount to be paid to each employee. The Court further understands that employees of Local Development Companies made redundant as a result of developments in the LEADER Programme are to be afforded statutory entitlements only on termination of their employment.
Summary of the Unions’ position
The Union side seeks the application of a single set of terms to apply to all staff made redundant in Local Development Companies regardless of the programme on which they were deployed. The Union side rejects the concept of differential redundancy terms applying to employees of a single company on the basis of the work to which they were deployed during their employment.
The Union side seeks redundancy terms of 3 week’s pay per year of service in addition to statutory entitlements with no overall ‘cap’ to apply on the value of the payment to each individual.
Summary of the Respondent’s position.
The Local Development Companies (represented by the ILDN and IBEC) confirmed to the Court their understanding of the Union side position and their acceptance in principle of the claim being made. The respondent did however confirm to the Court that, for funding related reasons, redundancies arising from developments in the Programmes delivered by Local Development Companies can only take place on the terms advised to the Court. The respondent set out the incapacity of Local Development Companies to address the Union side claim independently of support from the funding authorities.
RECOMMENDATION:
The Court cannot support a proposal that employees of a single employer and represented by the same Trade Unions and who are made redundant at the same time should be treated differentially at the point of their redundancy as regards the redundancy terms to be made available to them. The Court believes that such a proposition is unworkable and fundamentally misconceived.
The Court has been advised of a degree of financial analysis carried out by the parties in the context of the forum which was established as a result of the previous Labour Court Recommendation (LCR20890) and consequently understands the financial implications of the matters before the Court in terms of implementation of the SICAP Programme and the redundancy of employees arising therefrom. The Court has not had the benefit of the views of the de-facto decision makers in this matter and has no wider information available to it.
The Court therefore recommends that persons made redundant as a result of developments as regards the SICAP and LEADER programmes should be treated in an identical manner as regards the redundancy terms to be made available to them. The Court recommends that those terms should be 3 week’s pay per year of service in addition to statutory entitlement subject to an overall ‘cap’ in value of two years pay.
Signed on behalf of the Labour Court
Kevin Foley
19th November, 2015______________________
CCDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ceola Cronin, Court Secretary.