INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 20(1); INDUSTRIAL RELATIONS ACT; 1969
JOSEPH MURPHY STRUCTURAL ENGINEERS LTD
- AND -
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
Chairman: Mr Flood
Employer Member: Mr McHenry
Worker Member: Ms Ni Mhurchu
1. Redundancy payments.
2. The dispute before the Court concerns a claim by the Union on behalf of four of its members for payment of a redundancy package in excess of their statutory entitlement.
The dispute was referred to the Labour Court in accordance with Section 20(1) of the Industrial Relations Act, 1969. A Labour Court hearing took place on the 19th of October, 2000. The Union agreed to be bound by the Court's recommendation.
3. 1. Several attempts were made to contact the Company to discuss redundancy terms without success.
2. The Company has made reasonable profits and can afford to pay redundancy terms in line with other industries.
3. The workers concerned should receive five weeks pay per year of service exclusive of their statutory entitlement.
4. 1. There was no formal communication from the Union or the workers concerning any grievance regarding their redundancy payments.
2. The workers concerned were kept on by the Company longer than needed.
3. The Company does not have the financial resources to concede to the Union's claim.
The Company argued that it was normal practice in its business to employ people for the period of particular projects, and to let them go on completion. It further argued that the redundancy payments made were normal for the industry and that the Company was not in a financial position to meet the claim.
The Court examined the written and oral submissions made by the parties and the subsequent financial information supplied by the Company.
While the Court accepts that the figures presented show difficulties at present, due to the operating difficulties outlined, it is not clear what the future financial position might be for this Company.
The Court, while accepting that there is a practice in the building industry of employing people for the duration of contracts and paying only statutory redundancy, it does not accept that this Company is in the building industry as such and taking into account the length of service of the claimants, the Court recommends that the Company pay the claimants 2 weeks' pay per year of service, in addition to the payments already made, in full and final settlement of their claim.
Signed on behalf of the Labour Court
15th December, 2000______________________
Enquiries concerning this Recommendation should be addressed to Gerardine Buckley, Court Secretary.