INDUSTRIAL RELATIONS ACTS, 1946 TO 2004
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
(REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
- AND -
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
TECHNICAL, ENGINEERING AND ELECTRICAL UNION
Chairman: Ms Jenkinson
Employer Member: Mr Grier
Worker Member: Mr O'Neill
1. Redundancy terms.
2. The Company, formerly Champion Spark Plugs, announced the closure of its Naas facility on the 4th of May, 2004, with the loss of 59 jobs. The Union made a claim for redundancy terms of 7 weeks' pay per year of service, statutory entitlements and 8 weeks' pay in lieu of notice. Following a number of meetings, the Company's final offer was 3 weeks' pay for year of service, plus statutory. 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 2nd of June, 2004, in accordance with Section 26(1) of the Industrial Relations Act 1990. A Labour Court hearing took place on the 16th of June 2004.
3. 1. The Company is part of the Federal Mogul Corporation which is hugely successful. Results for the first quarter of 2004 showed a 14% increase in turnover over the comparative quarter in 2003, and a 9% increase in gross profits.
2. The Company in the past has paid voluntary terms of 5 weeks' pay per year of service, plus statutory entitlements for voluntary redundancy. In the present case, the redundancies are compulsory. The Union does not believe that the claim is excessive.
3. The sale of the site in Naas alone will address the redundancy claim.
1. The Company looked at a number of options, (details suppled to the Court) before its decision to close the plant in Naas. It has been open and honest with all financial information relative to the closure and this information was provided to all representatives.
2. Federal Mogul is currently filed for bankrupting protection under Chapter 11 (restructuring) in the USA and is in administration in the UK.
3. The Company is unable to meet the demands of the Union's claim. It believes that its offer, in the current circumstances, is fair and reasonable
In the context of the imminent closure of the Company, the Union seeks seven weeks' pay per year of service, plus statutory redundancy, plus pay in lieu of notice.
Due to its financial difficulties, the Company offered to pay 3 weeks' pay per year of service, plus statutory. Precedent exists within the Company, when voluntary redundancy packages were on offer, to pay five weeks' pay per year of service, plus statutory, plus pay in lieu of notice.
The Court has taken account of the financial circumstances of the Company.
In all the circumstances of this case, the Court recommends that, subject to an agreement on an orderly wind-down of the operation up to the actual date of closure, the Company should modify its offer as follows:
Payment of five weeks' pay per year of service, plus statutory entitlements.
Signed on behalf of the Labour Court
2nd July, 2004______________________
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.