FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : UNITED DRUG (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION UNITE DIVISION : Chairman: Mr Hayes Employer Member: Ms Doyle Worker Member: Ms Tanham |
1. Redundancy terms
BACKGROUND:
2. This dispute concerns a claim for enhanced redundancy terms. This dispute could not be resolved at local level and was the subject of a Conciliation Conference under the auspices of the Labour Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on the 31st May 2012, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 26th September 2012.
UNION’S ARGUMENTS:
3. 1. The Company is the largest pharmaceutical wholesaler in Ireland. It is in a financial position to enhance the redundancy terms on offer.
2. In previous redundancies the calculations were made on a wide spectrum of payments including basic, shift allowances, overtime and years of service.
3. The Company failed to honour the previously agreed package. It has unilaterally changed the content and application of previously agreed redundancy terms.
EMPLOYER'S ARGUMENTS:
4. 1. The impact of the deteriorating economy has had a substantial impact on the Company’s business.
2. A reduction in its customer base and bad debts from customers going into liquidation has also impacted the business.
3. A recent agreement on drug price reduction and legislation going before the Oireachtas for reference pricing and generic substitution will have a detrimental impact going forward.
RECOMMENDATION:
Having carefully considered the extensive oral, written and supplementary submissions of both parties to this dispute the Court does not recommend concession of the Union's claim, as the Company's offer was consistent with the provisions of the agreement in place between the parties.
The Court so recommends.
Signed on behalf of the Labour Court
Brendan Hayes
CR______________________
12th November 2012Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran Roche, Court Secretary.