INDUSTRIAL RELATIONS ACTS, 1946 TO 2001
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
H&K DUBLIN LIMITED
(REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
- AND -
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
Chairman: Mr Duffy
Employer Member: Mr Carberry
Worker Member: Mr. Somers
2. The Company is a manufacturer and supplier of commercial food service equipment, parts and installations. Its predominant customer over the last number of years has been the McDonalds fast food outlets. On the 17th of June, 2003, it was announced that the Company would close. The Union represents 46 employees. The Company's final redundancy offer was as follows:
€1,500 per year of service for day workers
€1,720 per year of service for night workers
€1,780 per year of service for supervisors
The above figures equated to roughly 3 weeks' pay per year of service, inclusive of
statutory entitlements. The Company also agreed to cover pension and VHI payments to the end of the year and to provide 5 and 10 year awards as if a full year was worked. The Union rejected the offer and is seeking the following:
- (8) weeks' pay per year of service exclusive of statutory entitlements.
- The application in full of the annual production bonus.
- The payment of all normal bonuses and extras payable at Christmas.
- The forward payment of (5) years VHI benefits.
- That all 5 and 10 year service awards for 2003 be honoured.
- The application of the maximum of €508.00 under the Act, to be the calculatory figure for all day workers severence payments.
The dispute was referred to the Labour Relations Commission and a conciliation conference took place. As the parties did not reach agreement, the dispute was referred to the Labour Court on the 4th of July, 2003, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 10th of July, 2003.
3. 1. The Company has been extremely successful over the last 11 years and can afford to pay the severance terms sought by the Union.
2. The workers have always been diligent, hard-working and, in particular, flexible in responding to the needs of the Company.
3. A number of the workers are at an age where it will be very difficult to find alternative employment.
4. 1. A major change in McDonald's strategy led to a series of new restaurant reductions over a number of months. This led to a major downturn in business for the Company (details supplied to the Court)
2. The Company has a significant level of debt and cannot afford to pay above the redundancy offered to the Union. It has paid in excess of National Wage Agreements in the last 10 years.
3. The offer made to the Union is reasonable and is not out of line for the industry.
Having considered the submissions of the parties, the Court recommends that the Company offers and that the Union accepts a redundancy package of five weeks' pay per year of service inclusive of statutory entitlements. Entitlement in respect of the ex-gratia and the statutory elements should be calculated by reference to the provisions of the Redundancy Payments Acts 1967-2003.
VHI payments should be continued for the remainder of the year.
5 and 10 years' service awards for 2003 should be honoured as if the staff had continued in employment for the remainder of the year.
Signed on behalf of the Labour Court
14th July, 2003______________________
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.