INDUSTRIAL RELATIONS ACTS, 1946 TO 2001
SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969
SHANNON TUGS LIMITED
- AND -
(REPRESENTED BY SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION)
Chairman: Ms Jenkinson
Employer Member: Mr Grier
Worker Member: Mr. Somers
1. Redundancy terms.
2. Up until early 2001, the Company held the three main contracts for the provision of ship towage in the Shannon Estuary. In October, 2000, it lost two of the contracts and announced that the third contract was secure until May, 2003. In November, 2000, an agreement was reached between the parties on a redundancy package and revised terms and conditions of employment for the employees remaining with the Company until the 31st of May, 2003. In December, 2000, the Company announced that it was terminating the contract and ceasing all operations on the Shannon Estuary.
The dispute before the Court concerns a claim by the Union on behalf of its member for an increased redundancy package as the original package was agreed on the basis that the worker concerned would remain with the Company until the contract ended on the 31st of May, 2003. The Company states that there was no guarantee of employment until the 31st of May, 2003, and the negotiations were subject to commercial viability.
The issue was referred to the Labour Court on the 4th of March, 2003, in accordance with Section 20(1) of the Industrial Relations Act, 1969. A Labour Court hearing took place on the 15th of October, 2003, the earliest date suitable to the parties.
The worker agreed to be bound by the Court's Recommendation.
3. 1. The redundancy package was negotiated and agreed on the clear understanding that the worker concerned would be retained by the Company until the 31st of May, 2003.
2. The worker concerned should receive appropriate compensation for the loss he has incurred.
4. 1. The Company ceased trading in early 2001. All other staff accepted the redundancy package as agreed.
2. There was no guarantee of employment until the 31st of May, 2003. The worker concerned has no further entitlement beyond the terms accepted by him.
The Court has considered the submissions of both parties. The Court is satisfied that there was an expectation when the Union concluded an agreement in November, 2000, which included the introduction of reduced terms and conditions of employment for those who were interested in remaining with the Company after 30th November, 2000, and that the claimant involved in this case would be retained. In all the circumstances of this case, the Court recommends that a payment of €7,500 should be paid to the claimant as compensation for that loss.
The Court recommends that this should be accepted in full and final settlement of all claims against the Company.
Signed on behalf of the Labour Court
10th November, 2003______________________
Enquiries concerning this Recommendation should be addressed to Gerardine Buckley, Court Secretary.