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2013

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LCR20573

FULL RECOMMENDATION

CD/13/296
RECOMMENDATIONNO.LCR20573
(CCC-133810-13)
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990



PARTIES :
NATIONAL RUSKS LIMITED

- AND -

SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION


DIVISION :

Chairman: Mr Hayes
Employer Member: Ms Doyle
Worker Member: Mr Shanahan
SUBJECT:
1. Redundancy Terms


BACKGROUND:

2. This dispute concerns the redundancy terms on offer to the former Workers. This dispute could not be resolved at local level and was the subject of a Conciliation Conference under the auspices of the Labour Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on the 18thJune 2013, in accordance with Section 26(1) of the Industrial Relations Act, 1990.

A Labour Court hearing took place on the 19thJuly 2013.


UNION’S ARGUMENTS:

3. 1. At a meeting on the 27thMay 2013, the Company stated they would be paying six weeks’ pay per year of service inclusive of statutory redundancy and that there would be an adjustment factor applied to take account of the old statutory versus the new statutory.

2. In subsequent discussions it emerged this was not on offer and that in fact what was on offer was four weeks’ pay per year of service plus statutory redundancy with an adjustment. Neither of these proposals were acceptable to the members.


EMPLOYER'S ARGUMENTS:

4. 1. The Company believes that the terms on offer to the former employees are extremely generous and competitive. Each employee affected by the decision and whose role is made redundant is being paid in lieu of notice. The Company element of the redundancy package is currently not capped.

2. The economic climate in Ireland has changed radically since 2008/2009 when Henry Denny and Kerry Agri Drivers redundancy payment disputes were heard in the Labour Court.

3. The State no longer operates a rebate of statutory redundancy payments to employers.



RECOMMENDATION:

The Court has given carefully consideration to the comprehensive written and oral submissions of both parties to this dispute.

In all the circumstances of this case the Court recommends that the Company adjust the severance terms on offer to four week’s pay per year of service in addition to statutory entitlement.

The Court so recommends.




Signed on behalf of the Labour Court



Brendan Hayes
CR______________________
31st July, 2013Deputy Chairman



NOTE

Enquiries concerning this Recommendation should be addressed to Ciaran Roche, Court Secretary.




 
 
 
 
 
 
 
 
 

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