INDUSTRIAL RELATIONS ACTS, 1946 TO 2004
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
SPRING GROVE SERVICES
(REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
- AND -
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
Chairman: Mr Duffy
Employer Member: Mr Grier
Worker Member: Ms Ni Mhurchu
1. Relocation compensation.
2. The Company has its Dublin and Eastern region workwear processing business located at Cabinteely, Co Dublin. Due to the expiration of the lease on the premises the Company is now moving to another southside location at the Sandyford Industrial Estate in Stillorgan. The Company employs 650 staff including approximately 36 staff at the Cabinteely premises who are involved in this claim.
The dispute before the Court concerns a claim by the Union for a relocation payment of €4,000. This amount is the same as was paid following a previous relocation from Ballsbridge to Pottery Road, Dun Laoghaire in 2003.
The dispute was the subject of two conciliation conferences under the auspices of the Labour Relations Commission in November 2005 and February 2006. As no agreement was reached, the dispute was referred to the Labour Court on the 30th March 2006, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 22nd June, 2006.
3. 1.The relocation of the Cabinteely staff to Stillorgan is part and parcel of the process of reorganisation of the Company which started back in 2002, at which time a relocation payment of €4,000 was agreed.
2. The Union contend that the Company is trying to negotiate a “per mile” formula for the Cabinteely staff. The Union believe this is not in accord with the Groups Employment Policy.
3. The Union believe that the Company is well placed to concede their claim as the Davis Service Group plc, of which the Company is a part, is increasing profits on an annual basis.
4. 1.The Company has been forced to move owing to the expiry of its lease. It has sought to minimise the impact of relocation by ensuring that the business is retained at another southside suburban location.
2. The new/refurbished plant at Stillorgan will ensure that staff enjoy much better facilities than are currently available at Cabinteely.
3. The Company’s offer of €1,500 is generous in relation to the circumstances of the move. It is also generous when compared with normal relocation compensation deals.
The Court accepts that there are differences in the circumstances surrounding the transfer from the Ballsbridge premises to the Dun Laoghaire premises and the move now in dispute. Moreover, the move from Ballsbridge facilitated the sale of the premises and it was not unreasonable that the staff concerned should have derived some financial benefit from that sale. No such consideration applies in this case.
In all the circumstances the Court considers that a payment of €2,000 per person affected is reasonable and recommends payment in that amount.
Signed on behalf of the Labour Court
6th July, 2006______________________
Enquiries concerning this Recommendation should be addressed to Madelon Geoghegan, Court Secretary.