FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : M.& J. GLEESON & CO. TRADING AS C & C GLEESON - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Foley Employer Member: Mr Murphy Worker Member: Mr Shanahan |
1. Redundancy terms and orderly wind-down payment.
BACKGROUND:
2. 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 22ndFebruary 2016, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 29thMarch, 2016.
UNION'S ARGUMENTS:
3. 1. The Union are seeking an enhanced redundancy payment/severance terms for their members as a result of the impending closure of the Company's plant in Borrisoleigh and the transfer of production to the Clonmel site.
2. The additional payment is in return for agreement on the orderly wind-down of the Borrisoleigh facility and for co-operation with the smooth transfer of production to the Clonmel site.
COMPANY'S ARGUMENTS:
4 1. The Company does not accept that the enhanced redundancy package sought by the Union is warranted.
2. While the Company has differing redundancy terms across its business units in the UK and Ireland, they average at broadly 3 to 3.5 weeks pay per year of service.
3.The redundancy terms were agreed in October 2015 at 3.5 weeks' pay per year of servicewith a cap of €72,000.
RECOMMENDATION:
The Court has given careful consideration to the written and oral submissions of the parties.
The Court recommends that the severance terms to apply to those made redundant on closure of the Borrisoleigh facility should be as follows:
The redundancy terms agreed in October 2015 as proposed by the Company of 3.5 weeks’ pay per year of service with a ‘cap’ of €72,000
Plus
A payment (outside the ‘cap’) of 1.5 weeks’ pay per year of service in return for co-operation with an orderly wind-down of the Borrisoleigh site including the absence of industrial action and the meeting of normal performance criteria during the wind-down period.
Signed on behalf of the Labour Court
Kevin Foley
31 March 2016______________________
MNDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Michael Neville, Court Secretary.