FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : KEELINGS DISTRIBUTION (REPRESENTED BY IBEC) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Hayes Employer Member: Mr Marie Worker Member: Ms O'Donnell |
1. Loss of earnings and calculation of redundancy payments.
BACKGROUND:
2. This dispute relates to the Company’s decision to cease the night shift operation which resulted in 19 Workers being moved to other shifts and losing the night shift premium. The Union is seeking compensation of two years loss of earnings for each Worker and that any compulsory redundancies within a two year period be calculated on the basis of their earnings on the night shift.
The Employer said that since 2003 it has only paid compensation based on 1.5 times the annual loss and that it has no plans to make any of the workers redundant.
- This dispute could not be resolved at local level and was the subject of a Conciliation Conference under the auspices of the Workplace Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on the 2nd November 2015 in accordance with Section 26(1) of the Industrial Relations Act, 1990.
A Labour Court hearing took place on the 8th January 2015.
UNION’S ARGUMENTS:
3. 1. The Company decision to restructure the night shift and the resulting compulsory move of 19 individuals to the day shift was a considerable change to their work/life arrangements.
2. The Union does not accept that previous restructuring agreements had anything like the impact this change had on the individuals.
3. Following discussions in the Workplace Relations Commission in April 2015 concerning a buy-out of the top rate of pay and reductions in shift premiums, the Company put forward proposals to pay compensation at twice the annual loss.
EMPLOYER'S ARGUMENTS:
4. 1. Since 2003, the Company has only paid compensation based on 1.5 times the annual loss. The proposal to pay twice the annual loss was never implemented.
2. All of the affected Workers accepted the payment of 1.5 times the annual loss which was paid to them and accepted by them on commencement of the new shift pattern.
3. The Company has no plans to make any of the Workers redundant.
RECOMMENDATION:
Having given careful consideration to the submissions of both parties the Court recommends as follows:
Compensation for Loss of Night Shift
Noting that the established general practice in the Company in cases involving compensation for loss of earnings is one and a half times annual loss involved and recognising that the LRC (WRC) Agreement referenced in the union submission did not seek to alter that general practice, the Court, finds no basis to do so on this occasion.
The Court so recommends.
Calculation of Redundancy Pay
The Court notes that no redundancies are proposed or are contemplated at this time. The circumstances in which the need for redundancies will arise in the future are, therefore, both unknown and unknowable. As a consequence the Court takes the view that it should be left open to the parties to address that issue when and in the circumstances in which it arises. This and any other issue that is relevant at that time may be referred back to the Court for a definitive recommendation in the circumstances then prevailing.
The Court so recommends.
Signed on behalf of the Labour Court
Brendan Hayes
CR______________________
18th January, 2016Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran Roche, Court Secretary.