FULL RECOMMENDATION
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : BERENDSEN IRELAND (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Ms Connolly Worker Member: Ms Tanham |
1. Compulsory Redundancy Package.
BACKGROUND:
2. This dispute concerns a claim for a compulsory redundancy package. 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 4th April, 2017, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 12th May, 2017.
UNION'S ARGUMENTS:
3. 1. The Union claimed 4.5 weeks for year of service (inclusive of statutory payment) with a proviso for those with less than 3 years service that they receive statutory plus 4 weeks wages where it is more beneficial than the 4.5 weeks formula. This is in line with similar terms the Company paid in 2010 when they argued they were in a less favourable economic position than today.
2. The staff deserve fair and reasonable redundancy terms as a result of their hard work and service and taking into account the lack of employment opportunities in Birr.
EMPLOYER'S ARGUMENTS:
4. 1. The Company initially offered to pay statutory plus one month's pay in line with that paid to eleven employees made redundant since 2015.
2. The Company is prepared to increase the package in this instance due to the particular circumstances where the plant in Birr is closing and there are no viable redeployment options available.
RECOMMENDATION:
The issue before the Court concerns a claim made by the Union for an ex-gratia redundancy payment for employees being made redundant due to the closure of the Company’s plant at Birr.
Having considered the arguments put forward by both parties, the Court recommends that the Company should pay an ex-gratia redundancy payment of 2 weeks’ pay per year of service plus the statutory redundancy payment subject to a “cap” of one year’s salary.
For those employees with less than two years’ service, they should be paid an ex-gratia payment of two weeks’ pay.
This recommendation is made in the context of the plant in Birr closing down with the consequences that all Claimants are subject to compulsory redundancy. In that regard the terms of the recommendation are specific to this location only and should not be quoted as a precedent in the event of future redundancies in the Company.
The Court so Recommends.
Signed on behalf of the Labour Court
Caroline Jenkinson
22nd May 2017______________________
JKDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Jason Kennedy, Court Secretary.