INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
ARAMARK IRELAND LIMITED
(REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
- AND -
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
Chairman: Ms Jenkinson
Employer Member: Mr Murphy
Worker Member: Mr Shanahan
1. Redundancy terms
2. This case concerns a dispute between the Company and the Union in relation to a claim for enhanced redundancy terms. The Company provides catering services at the Diageo site in Kilkenny which is due to close. The Union is seeking the enhanced redundancy terms that previously applied to contractors on the Diageo site. Management's position is that statutory redundancy entitlements will be applied to the workers but that no other ex gratia payments are either appropriate or sustainable.
The dispute was not 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 matter was referred to the Labour Court on 19th August 2013. A Labour Court hearing took place on 22nd October 2013.
3 1 The Union contends that the Company can well afford redundancy terms in excess of statutory entitlements. The Company is profitable and the workers have shown great loyalty and have helped the success of the Company over many years.
2 The Union does not accept Management's contention that only statutory redundancy entitlements should be paid to the workers. The Company has previously applied enhanced redundancy terms and the norm within the sector is for terms in excess of statutory entitlements.
4 1 Management does not consider it appropriate to pay enhanced redundancy terms. The Company is experiencing competitive pressures within its sector and is making every effort to remain competitive and maintain employment levels.
2 The Company policy in the majority of redundancy situations is to pay statutory entitlements only. The additional costs associated with the Union's claim are completely unsustainable and without merit.
The Union, on behalf of their members based at the Diageo Site in Kilkenny, sought an ex-gratia redundancy payment for workers being made redundant on the closure of the plant which is due to take place in December 2013. The Company stated that it had no policy of paying over and above the statutory redundancy payment and in the present economic climate an ex-gratia payment could not be paid.
The Union referred to the enhanced redundancy payment made by Diageo to its own employees and to a number of previous severance payments made to the employees of the Claimants’ employers in Shannon, Limerick and Galway where two weeks’ pay per year of service over and above the statutory payment was made.
Having considered the submissions of both sides the Court recommends that the Claimants should be paid a severance payment of two weeks' pay per year of service in addition to the statutory entitlement.
Signed on behalf of the Labour Court
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.