FULL RECOMMENDATION
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : AUTISM WEST LTD - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Marie Worker Member: Ms Tanham |
1. Redundancy Terms
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 1 July 2016 in accordance with Section 26(1) of the Industrial Relations Act, 1990.
A Labour Court hearing took place on the 12 October 2016.
UNION’S ARGUMENTS:
3. 1. There is no dispute that as the company is no longer sustainable it is agreed that a redundancy situation exists.
2. Staff were paid on the consolidated pay scales and were subject to pay cuts over the years under the Public Service Agreement. The employees are entitled to the enhanced redundancy package in line with their counter parts in the public sector.
EMPLOYER'S ARGUMENTS:
4. 1. The company is a Section 39 Agency fully funded by the HSE.
2. The company support the application for the enhanced redundancy package but does not have the financial means to meet the costs of same.
RECOMMENDATION:
The matter before the Court concerns a claim by the Union on behalf of twelve workers made redundant in July 2015 for an ex-gratia redundancy payment of 3 weeks’ pay per year of service, in excess of the statutory redundancy payment already paid.
The organisation is a Section 39 Agency fully funded by the HSE and the service which it provided is within the general remit of the HSE. The Employer told the Court that it had no funds to pay the ex-gratia redundancy payment claimed. It stated that it had no funds to pay the statutory redundancy either and therefore was compelled to apply to the Social Insurance Fund for such payments.
Having carefully considered the position of both parties, the Court recommends that in line with the provisions of the enhanced redundancy payments for public servants under the Public Service Agreement 2010 – 2014, these workers should receive an ex-gratia payment of 3 weeks’ pay per year of service, in excess of the statutory redundancy payment already paid, subject to the total statutory redundancy and ex-gratia payment not exceeding either 2 years’ pay or one half of the salary payable to preserved pension age, whichever is less.
The HSE was not represented at the hearing, and therefore the Court does not have the benefit of hearing its views on the matter. However, taking account of the organisation’s financial circumstances, the Court is of the view that it would not be unreasonable to expect the HSE to make the necessary funds available. The Court recommends that the parties should jointly cooperate in seeking sufficient funding from the HSE to enable the employer to implement this recommendation.
The Court so recommends.
Signed on behalf of the Labour Court
Caroline Jenkinson
LS______________________
24 October 2016Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Louise Shally, Court Secretary.