INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
- AND -
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
Chairman: Mr Flood
Employer Member: Mr McHenry
Worker Member: Mr. Somers
1. Redundancy terms and compensation for loss of earnings.
2. The Company operates a chicken processing plant at Shercock.
The dispute before the Court concerns a claim by the Union regarding the terms of proposed redundancies in the offal rendering plant. The Company plans to close the offal rendering plant which is on the same site as the processing plant. As a result of this closure, five redundancies will be required - three full-time and two part-time employees. There will also be a loss of guaranteed Saturday overtime to two supervisors.
The terms of the redundancy package offered by the Company are five weeks' pay per year of service plus statutory entitlement on a voluntary basis and one and a half times the annual loss of overtime based on the difference of the previous six months worked.
The Union is seeking five weeks' pay per year of service plus £7,000 and twice the annual loss based on current overtime working.
The issue could not be resolved at local level.
The dispute was the subject of a conciliation conference under the auspices of the Labour Relations Commission, held on the 16th of February, 2000. As agreement was not reached, the dispute was referred to the Labour Court under Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 17th of May, 2000.
3. 1. The Company is unwilling to accept seniority as the agreed mechanism for selecting redundancies as was the case in the processing plant.
2. The Union is seeking five weeks' pay per year of service plus £7,000 and twice the annual loss based on current overtime working.
3. There may also be a loss to a member as a result of the redundancies. He may be required to transfer from full-time work to part-time work. Therefore, the Union is seeking a redundancy to be affected and the worker to be re-employed part-time.
4. 1. The redundancies will be sought on a voluntary basis but if there is not a sufficient number of volunteers, the selection will be made on a "last in first out" basis. The redundancy package should apply to all operatives in the plant.
2. The terms of the redundancy package are five weeks' pay per year of service plus statutory entitlement and one and a half times the annual loss of overtime based on the difference of the previous six months worked. This offer is fair and reasonable
The Court, having taken into account the submissions made, and particularly the Company clarification on the method to be used in selection for redundancy, does not recommend any change to the Company redundancy package.
In relation to the loss of guaranteed Saturday overtime, the Court recommends that this be reviewed after six months and any financial loss be compensated at one and a half times the annual loss.
In the case of the employee required to transfer from full-time to part-time work, the Court does not see the above formula as being appropriate, and recommends that the parties agree a suitable compensation arrangement.
Signed on behalf of the Labour Court
26th May, 2000______________________
Enquiries concerning this Recommendation should be addressed to Gerardine Buckley, Court Secretary.