INDUSTRIAL RELATIONS ACTS, 1946 TO 2004
SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969
CLUBMAN OMEGA LTD
(REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
- AND -
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
Chairman: Mr Duffy
Employer Member: Mr Doherty
Worker Member: Mr Nash
1. Redundancy terms.
2. The case before the Court concerns a dispute between the Company and the Union regarding redundancy terms for 67 employees at the Company's plant in Buncrana, Co Donegal, following the Company's decision to outsource production to lower cost labour markets.
The Union is seeking redundancy terms of 1.5 weeks pay per year of service in addition to statutory entitlements.
The Company rejects the claim on the basis that it cannot afford to increase its costs further. It stated that it would have to borrow money in order to pay statutory redundancy entitlements.
On the 28th of September, 2005, the Union referred to issue to the Labour Court, in accordance with Section 20(1) of the Industrial Relations Act, 1969. A Labour Court hearing took place on the 10th of November, 2005,
The Union agreed to be bound by the Court's Recommendation.
3. 1. The Company is not closing down. It is merely moving its production to lower cost labour markets. The Union's claim is fair and reasonable in the circumstances.
2. It will be difficult for the workforce to gain employment elsewhere, as unemployment levels are extremely high in that area.
3. The workforce have given many years of loyal service to the Company, it is unacceptable that the Company refuse to enhance the terms beyond statutory minimum entitlements.
4. 1. The Company cannot afford to increase its costs by enhancing redundancy terms. The Company will remain trading until all creditors have been paid, at that time, it will cease trading.
2. The Company has lost several important contracts over recent years which has left them with no option but to outsource production in an attempt to remain viable.
The Court has carefully considered the submissions of the parties and evaluated all of the information with which it was provided.
Having regard to all the circumstances the Court is fully satisfied that the Union's claim is reasonable. Accordingly the Court recommends that the company pay a redundancy lump sum equal to 1.5 weeks pay per year of service to be paid in addition to statutory terms.
Signed on behalf of the Labour Court
17th November, 2005______________________
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.