INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
(REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)
- AND -
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
Chairman: Mr Duffy
Employer Member: Ms Doyle
Worker Member: Mr Shanahan
1. The terms of a compulsory redundancy package
2. This dispute concerns a compulsory redundancy package. The Union said a 2008 Labour Court Recommendation LCR19194 covers the staff that are to be made redundant. The 2008 Recommendation grants 6 weeks' pay per year of service for the first 15 years and 5 weeks' pay per year thereafter, all inclusive of statutory redundancy with a cap of €150,000. The Employer said that 2008 Recommendation was specific to the closure of a warehouse in Cork and that in 2011 an agreement was reached in the Labour Relations Commission on a new redundancy deal.
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 26th September 2014, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 22nd October 2014.
3. 1. The membership accepted some severe reductions in their terms and conditions to facilitate the Company’s recovery. These cost saving measures have helped to turn around the Company and assist with the long term viability of the business.
- 2. The Company have suggested that the recent redundancy terms applied to a store closure in Drogheda has set a precedent and that the 2008 Recommendation is no longer valid. SIPTU refute this assertion as there was no formal agreement of this package, it was accepted at local level by the members involved.
3. SIPTU has an agreement in place under the Labour Court Recommendation from 2008 which would increase the packages by a significant 50% (€50,000). The compulsory package has a cap of €150,000 while the voluntary package has a cap of €100,000.
4. 1. Following a review of the Head Office over the Summer of 2014, five positions were selected for redundancy. These redundancies are statutory redundancy capped at €600 per week plus two weeks' per year of service capped at €600 per week with an overall cap of €100,000.
2. The Company position is that the redundancy packages have moved over time to reflect the financial circumstances of the Company. There have been compulsory and voluntary redundancies since 2008 and no-one has received the 2008 package.
3. In 2011, an agreement was reached to achieve headcount reduction, to enhance flexibility and other measures to restructure the Company. SIPTU were party to this agreement and agreed a deal to cap the package at €100,000.
The Court recommends that, in the circumstances of this case, the company’s final offer be adjusted as follows:
1.Ex Gratia Payment
The ex grata element of the proposed package should be increased to three weeks pay per year of service, in addition to statutory entitlements.
The proposed cap on the total amount payable should be increased to €125,000.
The Court does not recommend recoupment of monies paid to those on ‘garden leave’
This recommendation is intended to apply to the redundancies giving rise to the dispute currently before the Court and is not intended to have wider application.
Signed on behalf of the Labour Court
29th October, 2014______________________
Enquiries concerning this Recommendation should be addressed to Ciaran Roche, Court Secretary.