FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : COCA COLA HBC IRELAND LTD - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Ms Doyle Worker Member: Mr Nash |
1. 1. Alleged failure of the Company to observe procedures, 2. Outsourcing of jobs,
3. Redundancy terms.
BACKGROUND:
2. The Company sells and distributes beverages, including products of The Coca-Cola Company in the Republic of Ireland. The Company is a subsidiary of Coca-Cola Hellenic Bottling Company S.A.. It has been operating in Ireland since1952 and employs approximately 600 people in the Republic of Ireland.
In 2007 two plants were closed as part of a new Company strategy called SIPS (Single Island Production System). The redundancy package was known as the SIPS package and was also used in a later redundancy case.
The Company announced on the 4th June 2009 that it was following a review of the logistics function in the South of Ireland and considering outsourcing 138 jobs in the Warehouse and Distribution section of the Company.
The Union asked for the opportunity to look at alternatives to outsourcing and attempted to negotiate with the Company on the alternative. An exhaustive consultation process took place but the Company were unable to reach agreement with the Union. The Company ultimately decided to outsource its logistics function.
The Union sought the assistance of the LRC and on the 19th August 2009 the Company attended but refused to allow the Unions issues to be dealt with as previously agreed.
The Union served official strike notice, which had previously been balloted on by the members on the Company on the 19th August 2009 and the strike commenced on the 27th August 2009.
The logistics function was outsourced on the 8th September 2009 and the employment of the SIPTU members was terminated with effect from that date.
The issues could not be resolved at local level. The Union referred the claim to the Labour Court on the 9th September 2009 in accordance with Section 20(1) of the Industrial Relations Act, 1969, and agreed to be bound by the recommendation of the Court. A Labour Court hearing took place on the 18th September, 2009.
UNION'S ARGUMENTS:
3. 1.The Union is seeking to have the SIPS Programme applied to all members made redundant by the Company.
2. The Union has also requested that a feasibility study, aimed at maintaining the maximum number of jobs in the warehouse at Ballycoolinon existing terms and conditions, be undertaken.
COMPANY'S ARGUMENTS:
4. 1.The Company maintains that it has acted in accordance with all relevant legislation as well as best Industrial Relations practice.
2.On the 7th September 2009 the Company made a final offer of redundancy terms which was open until 5 pm on Friday 11th September 2009. That offer has now expired. The Company maintains that the Union rejected the offer even before a ballot of members had taken place.
3. The logistics operation at Ballycoolin is already outsourced.
RECOMMENDATION:
Having considered the submissions of the parties and the other documentation furnished to it, the Court recommends that the dispute be resolved on the following basis:-
1. The Company should offer a redundancy package in line with that applied to the SIPS Programme, without alteration.
2. The parties should have further discussions on the Union's proposal to conduct a feasibility study in relation to the Ballycoolin plant.
The Court so recommends.
Signed on behalf of the Labour Court
Kevin Duffy
21st September, 2009______________________
MG.Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Madelon Geoghegan, Court Secretary.