EMPLOYMENT APPEALS TRIBUNAL
CASE NO.
RP604/2014
APPEAL OF:
Kenny Reynolds - appellant
against
Global Fruit Company – respondent
under
REDUNDANCY PAYMENTS ACTS 1967 TO 2007
I certify that the Tribunal
(Division of Tribunal)
Chairman: Mr J. Revington SC
Members: Mr M. Flood
Mr J. Jordan
heard this appeal at Dublin on 24th August 2015.
Representation:
Appellant: In person
Respondent: Mr Einde O’Donnell of Purdy Fitzgerald Solicitors, Block 1 GFSC. Moneenageisha, Galway
The decision of the Tribunal was as follows:-
The respondent company lost its biggest contract in September 2013 and following this the number of employees went from 35 down to 14. The appellant was maintained in employment at that point. As part of a restructuring process new work practices and changed shifts were put in place. The appellant refused to sign his new contract of employment and as a result the respondent made his old role redundant. The respondent feels that the appellant is not entitled to a redundancy payment because reasonable alternative employment was offered to him.
Appellant’s Case:
The appellant gave evidence. He worked for the respondent for about 10 years. He had worked Monday to Friday and 6 hours every second Sunday. The new contract was unacceptable to him. He lived 51km from his place of work as therefore split shifts would not suit him. However he did not raise this issue with the respondent. The appellant’s new contract provided that he could be assigned to work in the pack house and he was not prepared to work on the packing line. He was a warehouse operative and he operated a fork-lift and a pallet-lift and did some computer work. He did not want to pack and he was concerned that under the terms of the new contract he could be asked to pack everyday he came to work.
The appellant was aware of the difficulties faced by the respondent.
Respondent’s Case
The managing director gave evidence. The fresh produce business was set up in 2004. In 2010 they acquired a contract to supply a large supermarket chain but in 2013 that contract was lost. It was not obvious where the business would go next. When the contract was lost 9 of a total of 15 packaging employees were made redundant.
They needed flexibility from the staff to grow the business again. Also there are times when the warehouse is not busy and rather than let them go home they could work in the pack house. If people were flexible they could be given more hours to work. The managing director could not guarantee employees hours of work but if warehouse employees were prepared to work in the pack house he would do his best to give them enough hours at work to enable them earn a proper wage. All warehouse employees, except the claimant, agreed to sign the new contract. The claimant did not accept the new contract he said because he did not want to work in the pack house and working longer hours would affect his social life.
If the claimant accepted the contract he would have remained in employment.
Determination
It is common case that the respondent lost a significant contract and as a result significant changes were required to secure the future of the business. A number of redundancies were implemented and a greater level of flexibility was demanded of remaining employees. The respondent was working to redevelop the business and retain employees. Meanwhile the appellant considered the new contract he was offered completely unacceptable.
The Tribunal are satisfied that a redundancy situation existed in this case. The appellant was very concerned about the new contract he was offered. When he refused to accept the contract he was made redundant. The Tribunal finds that the appellant is entitled to a redundancy payment based on the following information:
Date employment commenced: 12 September 2004
Date Employment Ended: 10 January 2014
Gross Weekly Pay: €414.00
This award is made subject to the appellant having been in insured employment during the relevant period.
Sealed with the Seal of the
Employment Appeals Tribunal
This ________________________
(Sgd.) ________________________
(CHAIRMAN)