INDUSTRIAL RELATIONS ACTS, 1946 TO 2001
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
COMPLEX TOOLING AND MOULDING LIMITED
(REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
- AND -
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
Chairman: Ms Jenkinson
Employer Member: Mr Carberry
Worker Member: Mr. Somers
1. Redundancy Terms.
2. The Company is involved in the production of precision sheet metal products for the computer industry at its plant in Kells, Co. Meath. It currently employs fifty staff.
In March, 2002, due to a decline in demand for its product, the Company announced closure of the plant at the end of June, 2002.
The Company stated that due to its financial position it could only pay statutory redundancy to the staff, but offered to distribute any surplus money among the staff when all liabilities were cleared. The offer was rejected by the Union.
The Union, on behalf of its members is seeking three weeks' pay per year of service, plus statutory entitlement. Local discussions could not resolve the issue.
The dispute was the subject of a conciliation conference under the auspices of the Labour Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on the 8th of May, 2002, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 15th of May, 2002.
3. 1. The Company has a direct link with the electronic industry. The redundancy paid in this sector is six weeks' pay per year of service.
2. The workers concerned should receive three weeks' pay per year of service plus statutory entitlement. The claim is fair and reasonable.
4. 1. Due to the bad financial position the Company cannot meet the demands of the Union.
2. The offer to pay statutory redundancy and to distribute any surplus money among the workers after all liabilities are cleared should be accepted by the Union.
Having considered all aspects of this claim, the Court recommends that the Company should pay three weeks' pay per year of service inclusive of statutory redundancy payments to the claimants; this is being recommended on the basis that the Union should co-operate with an orderly shut down of the business.
Signed on behalf of the Labour Court
16th May, 2002______________________
Enquiries concerning this Recommendation should be addressed to Gerardine Buckley, Court Secretary.