FULL RECOMMENDATION
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : AXA INSURANCE DAC - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION UNITE THE UNION DIVISION : Chairman: Ms O'Donnell Employer Member: Ms Connolly Worker Member: Ms Tanham |
1. Restructuring and Redundancy.
BACKGROUND:
2. The case before the Court concerns a dispute between the Employer and the Unions in relation to the redundancy situation arising from restructuring measures taken by the Employer. The dispute relates specifically to the Unions' claim for enhanced redundancy terms on behalf of their members employed inthe Retail Branch Network and Telesales team. The 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 14th December, 2017, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 1st February, 2018.
UNION'S ARGUMENTS:
3. 1. The Unions assert that the Employer is in a financial position to concede its' claim for enhanced redundancy terms for its members.
2. The Unions maintain that the proposals put forward by the Employer is outside of industry norms.
EMPLOYER'S ARGUMENTS:
4. 1. The Employer maintains that the proposals put forward to the Unions are within the industry norms in the general insurance sector.
2. The Employer asserts that for a number of reasons it is not in a position to withstand the additional costs associated with the Unions' claim for enhanced redundancy terms.
RECOMMENDATION:
The issue in dispute concerns the Redundancy Terms that should apply to employees who work in the AXA Retail Branch Network and Telesales team and who are impacted by AXA’s proposals in relation to its Branch Network which will lead to a number of branch closures.
Management are proposing that the terms of the 2016 Agreement reached with the Unions with a few minor adjustments should apply. The Unions are looking for an enhanced package in terms of an increase in the number of weeks per year service and an increase in the cap as the Unions believe there will be compulsory redundancies. The Unions were also seeking that the terms should apply to all members in the category including those eligible for early retirement.
The Unions cited some examples where a higher rate had applied but not all examples cited were in the same sector. The Employer produced a chart that showed their package when taken as a whole was not out of sync with the trends in the Insurance sector.
The Court having read the submissions of both parties and listened carefully to the oral submissions made on the day recommends that the terms as set out in Appendix 1 of the WRC Document 13thDecember 2017 be amended by replacing the proposed terms of 5.5 weeks with 6 weeks. The amended sentence to read as follows; “A formula of 6 week’s pay per year of service will apply”. All other elements contained in the WRC Document of 13thDecember 2017 should apply.
The Court so recommends.
Signed on behalf of the Labour Court
Louise O'Donnell
19 February 2018______________________
SCDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Sharon Cahill, Court Secretary.