LCR21776

The parties have engaged extensively on this matter but remain in dispute as regards the framework against which the terms to be made available to those losing employment as a result of the closure of the Athy plant or transferring to the Ballina plant as a result of that closure should be constructed. The Trade Union contends that the terms to be made available should mirror or exceed those agreed between the parties eleven years ago upon the closure of the Drogheda plant in 2007. The Company contends that 80 personnel have been made redundant in the period since 2007 on terms which were different to and lesser than those terms.

The Court notes that neither party has submitted that the 2007 terms should be reproduced. The Trade Union contends that they should be exceeded and the Company believes that they are in excess of what is justified at this time. The Court notes that the terms which have been afforded to those made redundant since 2007 have not been agreed between the parties.

The terms made available in 2007 were agreed directly between the parties. Those terms included but were not confined to an agreed payment of 9 weeks’ pay per year of service inclusive of statutory redundancy entitlement and pay in lieu of notice together with one week’s pay per year of service or €10,000 (whichever is the greater) in respect of an orderly ‘wind-down’.

The Court, while giving due consideration to the history of agreements between the parties as regards the terms to be paid in the event of redundancy, must also give consideration to the fact that agreements are concluded within the context of the time that they are reached. The 2007 agreement, while certainly not typical of trends or practice at the time, reflected the circumstances of that time both within the business and in the economy generally. The parties did not agree in 2007 that the terms agreed then would apply at all times in the future.

The Court therefore, in making the Recommendation below, takes due account of the terms made available as a result of the 2007 agreement and of what has happened since. The Court’s Recommendation is intended to set out terms which can be seen to be reasonable in the circumstances of such matters in 2018 while at the same time having due regard to the parties’ history of agreements as regards redundancy terms.

In all of the circumstances therefore the Court recommends that the following terms should be made available in the context of the closure of the Athy plant:

Those being made redundant

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  •6 weeks pay per year of service plus statutory redundancy entitlement. A cap of 2.5 years basic pay, shift and bonus to apply to the ex-gratia portion of this severance payment i.e. statutory redundancy entitlement to be excluded from the cap.

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  •Noting that in 2007 the Company agreed that the orderly wind-down of the plant justified a payment to each worker of €10,000 at minimum, the Court recommends that this amount should be paid to each worker in return for the orderly wind-down of the Athy plant.

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  •Noting that in 2007 the company agreed that all notice would be unworked and an amount would be paid in lieu of such notice, the Court recommends that payment be made in lieu of all notice on the closure of the Athy plant.

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  •That VHI, Life Assurance cover and company doctor scheme should extend for one year after redundancy.

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  •Each employee made redundant should be entitled to claim an educational grant of €2,500 for vouched education or training undertaken by the employee himself or herself.

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  •Service, for calculation of ex-gratia purposes, should be calculated so as to include all service in the direct employment of the Company.

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  •A week’s pay should be calculated to include Basic pay, Shift and Bonus.

Those moving to the Ballina plant

Those transferring to the Ballina plant should retain their existing rate of pay in respect of a 39 hour week with a liability to work 42 hours (the additional three hours to be paid in addition) and should carry all service accrued to Ballina.

All other conditions of employment, including pension, should be as per the terms and conditions applying in the Ballina plant save for the following:

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  •Accrued annual leave entitlement (including service leave) at date of transfer which exceeds normal leave entitlements in Ballina should be retained by the employee for a period of two years after transfer. At the end of two years the total leave entitlement to be in accordance with the arrangements applying to employees in Ballina.

  •A person transferring to Ballina shall have a ‘cooling off’ period of three months during which he or she may decide to avail of redundancy as opposed to transferring definitively. The Company should apply this time limit flexibly having regard to individual circumstances.

General

Noting that the parties have been engaged in discussions for a number of years as regards bonus calculation, the Court recommends, because the plant is closing and the payment of bonus on this site will cease on closure, that calculations for 2018 and 2019, which will be the final years of bonus calculation, should be executed on an equalised basis as between general and other workers in Athy. This recommendation is made only in the context of the closure of the plant and is not a precedent for any other site or situation.

The Court so recommends.

Signed on behalf of the Labour Court



Kevin Foley
7 September 2018______________________
THChairman



NOTE

Enquiries concerning this Recommendation should be addressed to Therese Hickey, Court Secretary.