LCR22269

1.Compulsory Redundancies

BACKGROUND:

2.
The case concerns a claim by the Union, on behalf of 40 Workers, concerning the Company’s reduction of staff numbers in Dublin Airport.

The Employer did not attend the hearing of the Court.

On 22 September 2020, the Union, referred this dispute to the Labour Court in accordance with Section 20(1) of the Industrial Relations Act, 1969 and agreed to be bound by the Court's Recommendation.


UNION'S ARGUMENTS:

The Union are seeking a voluntary severance programme of 5 weeks pay per year of service, which is comparable to similar settlements across the retail sector.

The Company have not cited an inability to pay as a reason for not conceding the claim and based on the most recent financial information available the Company is able to pay this claim.


COMPANY'S ARGUMENTS:

The Employer did not attend the hearing.



RECOMMENDATION:

The Court has given very careful consideration to the written and oral submissions of the Trade Union. The employer chose not to attend the hearing of the Court but did write to the Court before the hearing to state that the effect on the business of the global pandemic was such that it resulted in compulsory redundancies. The employer also stated that it was satisfied that it is meeting its legal obligations to its employees.

The Trade Union modified its claim in its submission to the Court from its original claim. The Trade Union did not appear to dispute that the employer was intending or had already met its legal obligations to the members of the Trade Union. The Union submitted that the vast majority of its members employed by the employer had already been made compulsorily redundant at the date of the hearing of the Court.

The Court noted the submission by the Trade Union of what it asserted was the detail of company financial performance and also took note of the fact that the employer, in its letter to the Court, made no assertion that it was unable to pay redundancy terms greater than the terms requiring to be paid by the statute.

In all of the circumstances, the Court regards the Trade Union claim before the Court as reasonable and therefore recommends that the employer pay redundancy terms of four weeks pay per year of service inclusive of statutory entitlement. In addition, where employees are retained and suffer a reduction in hours and a consequent loss of earnings, the employer should compensate the employees concerned by payment of compensation at the rate of 1.5 times the annual loss suffered.

The Court so recommends

	Signed on behalf of the Labour Court
	Kevin Foley
NJ	______________________
13 October 2020	Chairman