LCR15568

FULL RECOMMENDATION CD/97/309 RECOMMENDATIONNO.LCR15568 (CC97/756) INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : C.A.B. GARAGE (REPRESENTED BY THE SOCIETY OF THE IRISH MOTOR INDUSTRY) - AND - AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION DIVISION : Chairman: Ms Owens Employer Member: Mr Pierce Worker Member: Mr Rorke

SUBJECT:
1. Redundancy arising from closure.


BACKGROUND:

2. The dispute concerns the redundancy settlement for 4 workers. In the last week of May, 1997, management announced that the Company would close on 27th June, 1997. At a meeting on 12th June, management made the following offer to the 4 workers:-


Years of service Statutory entitlement

Worker No. 1 33 £4,545
Worker No. 2 27 £4,446
Worker No. 3 23 £2,600
Worker No. 4 15 £1,768

The workers would also receive 4 weeks' pay in lieu of notice plus a lump sum of £1,000 each.

The offer was rejected by the Union and the dispute was referred to the Labour Relations Commission. A conciliation conference took place on 19th June, 1997. As the parties did not reach agreement, the dispute was referred to the Labour Court on 19th June, in accordance with Section 26(1), of the Industrial Relations Act, 1990. A Labour Court hearing took place on 24th June, 1997.


UNION'S ARGUMENTS:

3. 1. The C.A.B. Garage site is situated in an area of major urban renewal and is going to be sold for that reason. The 4 workers have given 100 years of loyal service between them and this is acknowledged by the Company. They deserve to receive a fair redundancy settlement for that loyalty. In a similar case, Swanpool Limited LCR No. 15163, the Court awarded statutory entitlements plus 2 weeks' pay per year of service. It is expected that the site will sell for a considerable sum of money but the Union has not been given access to the Company's accounts. The workers are being paid below the proper S.I.M.I. rate for a mechanic, which is £220.84 per week.

COMPANY'S ARGUMENTS:

4. 1. The garage is a small, family owned business and has only 5 employees. It has suffered heavy financial losses over the last 3 years and accumulated significant losses. Following the sale of the site, which has still to take place, the Company will be left with a modest profit. The managing director, who is also the main shareholder, is not entitled to statutory redundancy and has no pension or other source of income. The likely purchaser of the site has instructed the Company not to disclose the potential purchase price, which is considerably below the price suggested by the Union at previous meetings.


RECOMMENDATION:

The Court has considered the submissions and arguments made. It has also examined the Company's accounts which were submitted to the Court on a confidential basis.

In all the circumstances, the Court recommends that the Company agrees to pay redundancy at the rate of two weeks' pay per year of service (inclusive of statutory payments) plus notice payments in full settlement of the claim



Signed on behalf of the Labour Court



Evelyn Owens
7th July, 1997______________________
C.O'N./D.T.



NOTE

Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.