INDUSTRIAL RELATIONS ACTS, 1946 TO 2001
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
MINCH MALT LIMITED
(REPRESENTED BY THE IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
- AND -
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
Chairman: Mr Flood
Employer Member: Mr Keogh
Worker Member: Mr O'Neill
1. Selection and redundancy terms for three Clerical/Administrative staff.
2. The Company is part of the Greencore Malting Group. It manufactures malt for the drinks industry in Ireland and abroad at its plant in Athy, Co. Kildare.
In January, 2002, arising from a re-structuring programme, three clerical /administrative staff were made redundant as their posts no longer existed.
The Company has offered a redundancy package of four weeks' pay per year of service, plus €2,000 per person, in addition to the statutory entitlement, with an upper limit of €65,517 on the four weeks' pay per year of service. The Union rejected the offer.
The Union is seeking six weeks' pay per year of service over and above the statutory entitlement without any upper limit. Local discussions could not resolve the issue.
The dispute was the subject of two conciliation conferences under the auspices of the Labour Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on the 6th of February, 2002, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 7th of March, 2002, the earliest date suitable to the parties.
3. 1. The workers were made redundant without prior consultation or agreement with the Union.
2. The workers concerned were made redundant on voluntary redundancy terms which applied in 2001. The current redundancies are compulsory, therefore, the terms of the voluntary package are not appropriate.
3. The workers should receive six weeks' pay per year of service plus statutory entitlement. The upper limit should be removed.
4. 1. The Company has made it quite clear that there is a genuine need for the redundancies as the positions were no longer available.
2. The Company urgently needed to establish a competitive cost base in order to secure its survival and to implement these redundancies with immediate effect.
3. The current redundancy package on offer is fair and reasonable and recognises the service and commitment given by the workers concerned.
The Court having considered the submissions made by the parties and taking into account the particular circumstances of this case recommends as follows:-
The Management offer to be accepted by the claimant subject to the 4 weeks salary per year of service, being increased to 5 weeks salary per year of service. In addition the Court recommends that the cap be removed in this case.
The Court in making this recommendation does so for this specific case and it should no be seen as setting any precedent.
Signed on behalf of the Labour Court
25th March, 2002______________________
Enquiries concerning this Recommendation should be addressed to Gerardine Buckley, Court Secretary.