INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
DELPHI PACKARD ELECTRIC IRELAND LIMITED
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
- AND -
MANUFACTURING, SCIENCE, FINANCE
1. Issues concerning closure of Company.
2. The dispute concerns the Union's claim for the following redundancy package:-
(i) 12 weeks' pay per year of service, plus statutory payment.
(ii) An ex-gratia payment of £1,000 per year of service.
(iii) One week's earnings to be calculated on the gross earnings of the first 26 weeks of 1996.
(iv) Reckonable service to include all hours owed (holidays, minimum notice, etc).
(v) Payment of VHI for a period of 1 year from June, 1996 to June, 1997.
(vi) Pension from age 55, to include full credits for remaining years to 65.
(vii) Payment of a lump sum into the pension fund for those under 55.
(viii) Provision of training grants.
(ix) Full entitlements for staff who worked full-time, while contracted for part-time work.
(x) Full entitlements for staff who have worked for the Company for a number of years through agencies.
(xi) To rectify the salaries of 2 workers who are not being paid according to agreed salary scales.
Agreement could not be reached at local level and the issue was referred to the Labour Relations Commission for a conciliation conference on 24th May, 1996. Again, agreement was not reached and the dispute was referred to the Labour Court on 27th May, 1996 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 29th May, 1996.
3. 1. The following outstanding payments should be made prior to the redundancy calculations:-
(i) 3 outstanding payments due under the terms of the PCW, which workers agreed to defer as part of the viability package.
(ii) Payment of 3% under PESP.
(iii) Payment of 2 outstanding increments, one of which is a long-standing agreed contractual payment. The second is a payment to supervisors for controlling two areas as opposed to one.
(iv) Payment of half of the 1996 incentive bonus.
2. The workers are entitled to a fair and equitable redundancy package as they have made major concessions over the years in order to make the plant viable. These concessions included acceptance of no-strike clauses, supervisors controlling two areas as opposed to one, working an extra two hours per week without pay and deferring payments of monies owed to them. The age profile of many of the workers will also affect their future employment prospects.
4. 1. The Company was allocated a fixed budget to effect the wind-up of the plant and cannot afford to consider any claim which would raise the cost of the overall redundancy package. Management outlined from the beginning that the package was non-negotiable.
2. The Company recognises the contribution made by the employees over the years, but considerable losses and lack of competitiveness has forced the closure of the plant. Management's offer of 5 weeks' pay per year of service, inclusive of statutory entitlements, compares very favourably with terms offered by employers in a similar position to the Company.
The Court has considered the submissions from MSF and the Company with respect to the various claims made by the Union arising from the decision by the Company to close its Tallaght plant and sets out below its recommendations:-
(1) Redundancy Pay :- The Court recommends that the Company's proposals of 5 weeks' pay per year of service be accepted, subject to it being amended to read "actual pay" and that it exclude statutory payments. Where employees were contracted to work a lesser number of hours than the normal week, their actual pay should also be used.
(2) P.C.W. :- The Court recommends that for the purpose of calculating redundancy payments the outstanding Phases 1 and 2 of PCW should be included.
(3) P.E.S.P. :- The Court does not recommend concession of the claim.
(4) Ex-gratia - £1000 claimed :- The Court does not recommend concession of this claim.
(5) Funding for early retirement option :- The Court recommends that this matter be taken up with the Trustees of the Fund.
(6) All holidays owed should be paid.
(7) V.H.I. : - The Court does not recommend concession of the claim.
(8) Full entitlement for staff who worked full time :- The Court recommends in favour of the Union's position.
(9) Agency staff :- These are not employees of Packard and accordingly are not covered by this recommendation.
(10) Contractual increments :- All contractual commitments should be honoured.
(11) The Union also raised matters of training grants and the availability of the plant.
The Court understands these matters are being examined in another forum and accordingly does not make any recommendation.
(12) The Court would urge the Company to give every assistance to employees in the area of financial advice and job placement.
Signed on behalf of the Labour Court
6th June, 1996______________________
Enquiries concerning this Recommendation should be addressed to Dympna Greene, Court Secretary.