ADJUDICATION OFFICER DECISION
Adjudication Reference: ADJ-00050365 conjoined with ADJ 46671 and 49932
Parties:
| Complainant | Respondent |
Parties | Seamus Cronin | Kerry Creameries Ltd |
Representatives | Mr Paul Maier instructed by Kirwan McKeown James LLP Solicitors | Mr Ray Ryan BL instructed by Ger Connolly Mason Hayes and Curran LLP |
Complaint:
Act | Complaint Reference No. | Date of Receipt |
Complaint seeking adjudication by the Workplace Relations Commission under Section 8 of the Unfair Dismissals Act, 1977 | CA-00061795-001 | 20/02/2024 |
Date of Adjudication Hearing: 06/05/2025
Workplace Relations Commission Adjudication Officer: Patsy Doyle
Procedure:
In accordance Section 8 of the Unfair Dismissals Acts, 1977 - 2015, following the referral of the complaint to me by the Director General, I inquired into the complaints and gave the parties an opportunity to be heard by me and to present to me any evidence relevant to the complaints.
Background:
On 20 February 2024, the Complainant submitted a claim for unfair dismissal against his former employer, Kerry Group PLC. The legal title of the company was altered on consent to Kerry Creameries Ltd. The employment commenced on 13 May 1979 and ran continuously until 31 December 2023 when the complainant was made redundant Cronin availed of a number of fixed term contracts post-retirement and has found some new work. Mr. Cronin has sought the remedy of Re-instatement |
Summary of Respondents’ Case:
CA-00061795-001 Claim for Unfair Dismissal The Respondent has disputed the claim for unfair dismissal and has outlined that Mr Cronin’s employment ended as a result of a corporate decision to conclude the outsourcing the business of milk tank driving to a third party. The Respondent argued that Mr Cronin was dismissed through redundancy which constituted a permitted defence in the claim for unfair dismissal. The Respondent rejected that dismissal arose from the complainant having made protected disclosures and pointed to the gestation of the decision to conclude their direct employment of milk tank drivers from 2010. There was no causal connection between protected disclosures and dismissal. Mr Cronin did not demonstrate detriment. Mc Grath Partnership v Monaghan PDD 162. Labour Court Solas v Patrick Wadee PD/18/9 endorsed the “but for test “applied in O’ Neill v Toni and Guy Blackrock ltd [2010] ELR 21 The majority of milk collection had been undertaken through an outsourced model for many years, and this was supplemented by the directly employed drivers with whom Mr Cronin was aligned. The evolution of how milk collection was operated at the business was fully understood by the complainant who had witnessed redundancy programmes. Counsel outlined the background to the consultation process which commenced with an engagement with SIPTU which placed the cadre of seven drivers at risk of redundancy in the last week of October 2023. When a request to meet was denied the complainant and his colleagues were notified of being “at risk “of redundancy on an individual basis. On 3 November 2023, The Respondent hosted a consultation with the Complainant, who was represented by the Union. SIPTU sought to bolster the severance offered by addition of a number of add Ons: €7,500, back pay offered, but rejected for cooperating with recording breaks, an upskilling amount of €5,000. The Respondent flagged that the severance would be accompanied by a mandatory compromise agreement. On 9 November 2023, the parties re-engaged and consulted further on the rationale for redundancy. An action plan to issue individualised offers of severance followed. Both Legal and Union worlds collided after this as both representatives sought release of the details of severance on offer. This hampered progress while the mandated representative for the purposes of negotiating severance was clarified. Senior Officers in SIPTU approached the company and sought that the redundancies were voluntary and incorporation of the lunch money in the calculation of redundancy. The Respondent was hesitant as “the issue of compulsory redundancy had never arisen before this, and it failed to see how offering voluntary redundancy would make any difference now when the positions were now confirmed as being redundant as of 31 December 2023.” This was met by a further bid to augment the exit arrangement by the Union who sought. “To extend the date of redundancy “on 15 December 2023 “Our members believe they now have no alternative but to ballot for both industrial action and strike action on the dispute of the company’s decision to terminate their employment by means of compulsory redundancy. We remain available to meet on this dispute and urge the company to agree to our request for an extension to the date of redundancy to give adequate time to engage on the matters in dispute “ The Respondent declined through Ms O Carroll and wrote to the complainant outlining that he would receive statutory redundancy, notice, annual leave on termination of employment and requested the truck be dropped back on 29 December 2023. On 28 December 2023, the Union wrote: “We write to inform and notify the company that SIPTU driver members employed by Kerry Group Agribusiness have voted unanimously in favour of industrial action and strike action by way of two separate secret ballots “ The strike was set for “9 am on January 17, 2024, and will take the form of a full withdrawal of labour with the placing of continuous pickets at the company’s premise …...until our dispute is resolved “ The dispute continued with a picket during January 2024. Both Management and Union attended the WRC Conciliation on 7 February 2024 “At this meeting, the Respondent offered each claimant the opportunity of continuing in employment but not as a driver as this role no longer existed. Each refused. However, this conciliation ended when SIPTU were made aware that each employee had filed their unfair dismissal claims having selected compensation as opposed to re-instatement as their preferred remedy clearly indicating that they did not want to return to work for the Respondent “ The Union stood back at that stage and the legal representation continued. It is the Respondent case that evidence adduced will prove that the Respondent is permitted to rely on the defence in Section 6(4) (c) of the Unfair dismissal Act. (4) Without prejudice to the generality of subsection (1) of this section, the dismissal of an employee shall be deemed, for the purposes of this Act, not to be an unfair dismissal, if it results wholly or mainly from one or more of the following: ……… (c) the redundancy of the employee, Evidence of James OConnell. General Manager (Affirmation) Mr OConnell is 1 of 5 Senior Managers and General Manager of the Agri business. He transitioned from the ground up to Head of Quality in 2017 to full time in the present role since January 2022. Kerry Group employs 24,000 employees. However, the Company no longer employs drivers of milk collection. Historically, there were hundreds of staff drivers prior to the evolution of outsourcing from 2009. The Company objective moved to a targeted 24/7 model from 2001, with flexibility provided by hauliers. Costings were commenced in 2020, with flexibility for more contracted milk collection from March 2023. An earlier move in 2021 did not progress. Monies to fund a redundancy were sanctioned from the Kerry Group. On 16 August 2023, the company made the decision to outsource the milk collection service in full. Mr OConnell was aware that Mr Cronin had made a protected disclosure, but termination of his employment was not linked to this. On 26 October 2023, the news of redundancy for twenty people was shared with SIPTU, but the Union declined to attend a meeting. On 3 November 2023, the Union was notified at the Company office that following a review undertaken at the business, the model of milk driver was no longer viable at the business. This was a “commercial judgement” taken in the best interest of the company. This kicked off the 30-day consultation for redundancy. The Union wanted to know about recognition of allowances in calculation of redundancy. On 9 November 2023, Mr OConnell met with Mr Cronin and his colleagues. “I told them I would facilitate contractor’s roles post redundancy, outside of the redundancy process. I asked them to come to me directly within 7 days as routes were being carved out for tender and uptake “ The Union discussed the meal allowance. Mr OConnell submitted that if Mr Cronin and his colleagues had expressed an interest in contractors, he would have facilitated that, if not likely their own routes, but not far away. He recalled announcing live company vacancies open to them in Factories Stores Fertiliser / feed In cross examination, Mr Maier explored the entity Kerry Agri Business as part of Kerry Agri business Trading ltd. He explained that Kerry Dairy Holding IRL sits on top of the legal entities. Mr Twomey ex operations and transport manager was no longer with the business. Mr Dillane as Transport Co Ordinator came to give evidence. He was unaware of just how many employees were associated with Kerry Creameries ltd. There were four pillars. Mr OConnell reaffirmed that the decision to outsource the milk tank drivers evolved from 2001 and had been followed by various redundancies. He decided the redundancies of 2023, which were not limited to drivers, but had a 2022 gestation. He confirmed that the company had not presented a specific report to staff to justify redundancies. He simply read out the announcement and had not anticipated ending up at the WRC. He denied this was a collective redundancy. It cost 1million euro. Mr OConnell described the model of 24/7 delivery and collection of milk via haulage contractors / owner drivers or sole traders through Service Level Agreement. The Company owns sixty tankers and routes are now optimised and efficient. He knew that the drivers were refusing to record breaks but had not discussed this with them. He did not accept the pattern relied on by the complainant as “he could take his breaks when and where he wanted “He was not limited to farm or factory. The tachograph provided a log on, log off mechanism. In addressing the claims under Organisation of working Time Act. 1997, Mr OConnell relied on the collective agreement grounding Mr Cronin’s employment. In clarification, Mr OConnell confirmed that the strike relied by the complainant on was a Protest. In relation to the Tachograph classification of “other work “this was not measured outside of I asked Mr OConnell if the untapped ex-gratia redundancy quantum was still there, or whether it had been a one-way journey back to its source.? He replied “It may not be one way “ He confirmed that the fleet of trucks operated by Mr Cronin and his colleagues had been sold and not available. He was not aware of a staff handbook. Evidence of Ms Fiona OCarroll, Director of Human Resources Ms O Carroll is HR Director in Kerry Dairy Ireland and Kerry Ingredients Irl ltd since 2013. Her career has spanned over 30 years in human resources. The Human resource function has been restructured. Part of the HR function has been disbanded in UK and Ireland. HR administration is provided from Kuala Lumpur with senior aspects retained. She reports directly to CEO. Ms O Carroll recalled the 16 August 2023 meeting where a commercial decision was made by Mr OConnell to restructure more than twenty roles through redundancy. She agreed with the plan and confirmed that this conversation commenced in 2020. There was to be a reduction of seven employees in Agribusiness, the homogenous group of drivers (2 of whom rip) And five employees across the greater business. She referred to the SIPTU generated letter of April 2022 where a company offer on annual leave and pay for the seven drivers had been rejected in favour of awaiting the outcome of talks in Listowel. 1 a confirmation that contracted hours are in line with the average 48 hrs weekly in WTA/06/02, Collective Agreement. 2 hourly pays calculated on basic pay, sampling and gallonage allowances clarification. 3 clarifications on the hourly rate and its breakdown (what hours are flat rate, what (if any) hours are premium rate etc. 4 Clarification on Sunday pay within the agreement. 5 compensations for drivers who worked over and above contracted hours. 6 Agreement that working arrangements going forward will be 5 10 hr days in peak season with compensatory time off in off peak time. Compensation and overtime claimed. Ms O Carroll confirmed that she had responded on 23 May 2023. 1 she made an error on standby time when she classed it as an exclusionary measurement. 2 Annualised hours arrangements prevailed. 3 Sunday addressed in the 2005 agreement. 4 Rejected 5-day week. The announcement of redundancy followed in November, and a level of confusion followed over just who was representing the complainant. The first scheduled meeting of 31 October 2022 was not attended by SIPTU. Letters arrived from both Union and Solicitors. The 3 rd. November meeting was introduced as an Individual consultation, but the 5 drivers came as a group and were represented by their Union. They asked to keep their roles but were informed their jobs were gone. It became about “figures “after that and “heated meetings “followed. Offers were made on foot of LCR 19437 and the respondent responded to the Union on 13 December 2023 through Ms OCarroll “…. we note your reference to balloting your members for industrial action. While this is a matter for your members, we believe it unnecessary. However, before doing so it is important that hey fully understand as outlined 8in our correspondence to them that all ex gratia terms currently on offer will be forfeited on 31 December 2023 if we do not receive the signed redundancy agreements on the date specified i.e. on or before 14 December 22023.These amount will not be re-instated as they are only available to us until that date . Should this arise, your members will be paid their statutory redundancy and notice only. It is therefore important that they make this decision with this knowledge and with a full understanding of its consequences.” Ms OCarroll outlined that the waiver sought in the Agreement on leaving was “standard for Kerry “ Mr Cronin and his colleagues did not sign the redundancy agreement, and a Trade Dispute followed. She denied there was any issue with Mr Cronin complaint to the Inspectorate as collaboration had followed between HR and WRC “many times “. During cross examination, Ms O Carroll worked with Mr Maier to delineate the emphasis placed on bringing together of Dairy and nutritional Agribusiness. She confirmed she was the most senior human resource manager and had been directly involved in the restructuring programme from August 16, 2023. There were 7 driver redundancies inclusive of the transport manager. The issue in how milk collection was organised was under consideration since 2001. The final decision to exit milk collection was made on 16 August 2023 as one that was more cost effective in favour of external hauliers. Ms Carroll outlined that it was advantageous in terms of flexibility and cost and constituted an initiative engaged by all Dairy Processors over the past 10 years. The 4 Pillars are not companies. There are 9 legal entities in Kerry dairy Ireland of which her employer Kerry Ingredients Irl ltd was a subsidiary. In answer to who controlled OWT compliance, Ms OCarroll answered the Transport Manager, prior to his departure. Contracts are now in place for all employees. Ms O Carroll declared that Mr Cronin was an annualised hours employee paid the same throughout the year, similar to manufacturing at Charleville. The Agreements were not incorporated in a statement of terms and were expressed terms. The Union/ Management had not engaged further following the respondent letter of May 23, 2022. Ms OCarroll clarified that “stand by “consisted of “waiting for milk to go in and out “and it was working time at 72 minutes. Employees had access to “My Kerry “as an information tool. Ms O Carroll had some knowledge of compulsory redundancies but there were not a high number at the business. She confirmed that Mr Cronin was offered the option of becoming a contractor during consultation. She recalled the 18 December 2023 letter of termination of employment on 29 December 2023. Ms OCarroll wrote to SIPTU dated 5 January 2023 (sic) “….. compulsory redundancies have nothing to do with the issue at hand. Despite Kerry complying with the terms of a previous Labour Court recommendation which resulted in your members being offered generous ex gratia redundancy payments way above the current Kerry Policy, we are aware that your members rejected this offer as they believe their current case before the Workplace Relations Commission (WRC) concerning working time are of greater value to the amount offered. These cases are assigned a hearing date of 31 January 2024 by the WRC but have since been cancelled. “ The Respondent recognised the complainants appointed Solicitors “to focus on the resolution of this claim “pre the protest in Tralee. The Respondent had not hosted a localised procedural framework surrounding the myriads of claims from December 2022 as no request was made to process these complaints at base. In clarifications, Ms Ocarroll confirmed that Sunday had not been recognised for pay purposes historically. There was no push back from the Union on the error regarding the categorisation of stand by time in May 2022. Pay slips were sent electronically and a 2009 staff handbook was available within the business. This was submitted to the WRC on 13 May 2025. Ms O Carroll confirmed that a Protected Disclosure Policy was available at the business. The alternatives to redundancy were set in the alternative’s roles discussed at the early meeting with the Union. The business did not host a leaving party for the drivers. |
Findings and Conclusions:
I have been requested to reach a Decision in the claim for unfair dismissal.
In reaching my decisions, I have had regard for the written submissions and oral evidence adduced at hearing.
Mr Cronin had been maintained on a fixed term arrangement since his normal retirement date in May 2021. I was not provided with any foundation documentation on Mr Cronin’s first hire or his extension in 2021. Both parties agree that he received a payment to the end of his contract destined for May 2024.
In the event of Mr O Cronin’s claim for unfair dismissal being upheld, he has elected for the option of re-instatement at the Respondent business. When canvassed on this plea, the Respondent contends that there is simply no way back and the Adjudicator should look carefully at the sequence of events, where the severance payment on offer which comprised a commensurate redundancy payment, was not vetoed in principle but failed to progress due to exclusion of the lunch money from the base calculations on quantum.
The Respondent has disputed that an animus existed between Mr Cronin and the business which prompted his dismissal. It is clear to me that Mr Cronin took a laissez faire approach to his terms of employment until 2022 and then worked in a measured way through his shop steward on trying to get a sense on work time ceilings.
I was unsure given the frailty of the documentation linked to employment whether I should exempt Mr Cronin from his claim under the Unfair Dismissal Act 1977 in accordance with Section 2(1) (b) on normal retirement age.
I accept that Mr Cronin did not seem to be in possession of the handbook dated 2009 which had a mandatory aged 65 retirement. However, I am certain that he knew of the age of retirement given his decision to freeze his pension pot.
However, I find I cannot exclude him due to the absence of any definitive robust employment documentation in his possession at that relevant time.
In that, I distinguish the facts in Mc Quaid O Flanagan Warehouse Transport ltd and Peter Smith UDD 2340, where the Court did not apply the exemption due to the differential in retirement ages in staff handbook at 66 and terms at 65 years of age.
As I had stated previously, I had intended to have these nine linked Decisions completed by the end of June 2025. In my deliberations, post hearing, I required time to apply some extended consideration to the points both parties made at hearing. That is the reason for my delay.
I have also responded to a cumulative three Parliamentary Questions from Mr Cronin’s colleague public representative. I restated the Agreement made by the Parties at hearing and refused to be rushed in my decision making.
Given that I received assurances from the Complainants nominated representatives that communication would issue from that source alone, I have found these extra -procedural approaches to be unusual of an independent decision maker.
The claims before me are made in law and decisions issued on how I believe the law is applied to the evidence and facts revealed by the parties.
WRC Adjudication on employment rights such as this case is a completely separate forum to WRC Adjudication / Conciliation / Mediation on IR matters.
This difference goes to the very epicentre of this claim for unfair dismissal.
I have already explained the right of appeal open to Mr Cronin.
Claim:
For now, I want to consider the claim for unfair dismissal submitted on 20 February 2024, which has been rejected by the Respondent.
The Complainant has found some new work but has submitted a clear message that he wants to go back to work for the Respondent. He believes he has been wronged.
The Law on Dismissal is contained in the Unfair Dismissals Act, 1977, as amended.
Section 1 defines Dismissal as:
“Dismissal,” in relation to an employee, means—
- (a) the termination by his employer of the employee’s contract of employment with the employer, whether prior notice of the termination was or was not given to the employee,
Redundancy
“redundancy” means any of the matters referred to in paragraphs (a) to (e) of section 7 (2) of the Redundancy Payments Act, 1967, as amended by the Redundancy Payments Act, 1971;
Section 6(1) determines that substantial grounds much underpin a redundancy.
Unfair dismissal.
6.— (1) Subject to the provisions of this section, the dismissal of an employee shall be deemed, for the purposes of this Act, to be an unfair dismissal unless, having regard to all the circumstances, there were substantial grounds justifying the dismissal.
Section 6(2) (ba) places a dismissal “wholly or mainly “for protected disclosure reasons in a strict unfair dismissal category.
(2) Without prejudice to the generality of subsection (1) of this section, the dismissal of an employee shall be deemed, for the purposes of this Act, to be an unfair dismissal if it results wholly or mainly from one or more of the following:
(ba) the employee having made a protected disclosure,
Section 6(3) of the Act addresses the mechanisms surrounding the release of an employee through redundancy on how the process was conducted and whether it contravened an agreed procedure between Union/ Management
3) Without prejudice to the generality of subsection (1) of this section, if an employee was dismissed due to redundancy but the circumstances constituting the redundancy applied equally to one or more other employees in similar employment with the same employer who have not been dismissed, and either—
(a) the selection of that employee for dismissal resulted wholly or mainly from one or more of the matters specified in subsection (2) of this section or another matter that would not be a ground justifying dismissal, or
(b) he was selected for dismissal in contravention of a procedure (being a procedure that has been agreed upon by or on behalf of the employer and by the employee or a trade union, or an excepted body under the Trade Union Acts, 1941 and 1971, representing him or has been established by the custom and practice of the employment concerned) relating to redundancy and there were no special reasons justifying a departure from that procedure,
then the dismissal shall be deemed, for the purposes of this Act, to be an unfair dismissal.
Section 6(4) provides a defence to the Respondent.
4) Without prejudice to the generality of subsection (1) of this section, the dismissal of an employee shall be deemed, for the purposes of this Act, not to be an unfair dismissal, if it results wholly or mainly from one or more of the following:
- c) the redundancy of the employee, and
(d) the employee being unable to work or continue to work in the position which he held without contravention (by him or by his employer) of a duty or restriction imposed by or under any statute or instrument made under statute.
Section 6 (6) places the burden of proof on the Respondent to demonstrate that Dismissal occurred within the parameters of Section 6(4)
(6) In determining for the purposes of this Act whether the dismissal of an employee was an unfair dismissal or not, it shall be for the employer to show that the dismissal resulted wholly or mainly from one or more of the matters specified in subsection (4) of this section or that there were other substantial grounds justifying the dismissal.
Section 6(7) permits me to explore the reasonableness of the conduct of the Respondent in demonstrating that they acted reasonably.
(7) Without prejudice to the generality of subsection (1) of this section, in determining if a dismissal is an unfair dismissal, regard may be had, if the adjudication officer or the Labour Court], as the case may be, considers it appropriate to do so—
(a) to the reasonableness or otherwise of the conduct (whether by act or omission) of the employer in relation to the dismissal,
Before I consider the facts as raised in this aspect of the case, I would like to once more reflect on the collision of both worlds in this case. That of the Union and that of the legal representatives.
It is open to any employee to choose a representative to assist in workplace issues. It is advisable to bring an advocate to assist in raising cogent arguments on terms and conditions.
SI 146/2000 and Burns and Hartigan v Governor of Castlerea Prison [2009] 20 ELR 109
“Exceptional grounds necessary to permit legal representation “
I would deem it essential to be represented during a redundancy situation, which may be a once only event in most people’s lives, but it is extremely technical in form and content. It can be life changing and words spoken can be traumatic and enduring.
The Complainant was a working longtime member of SIPTU at the time that Redundancy was first mentioned to the Union in his case in October 2023. In his evidence he described leaving the business of the redundancy to the Union, whom he trusted and did not initially recall Mr OConnell offering fall back employment to him. He also admitted that he would prefer to “stay working there” “
By then he had lodged his workplace complaints to both the WRC Inspectorate and WRC Adjudication, 19 December 2022, where he was legally represented. He had augmented these in August 2023.
It is common case that SIPTU walked through the news of “at risk of “redundancy and the efforts to maximise the severance package with the Complainant during November 2023 to date of dismissal 31 December 2023 and beyond to January 17, 2024, at least. I have read the correspondence which strove to build a maximum pot for Mr Cronin beyond the €25,000 on offer by hitting all the unrealised goals of the employment.
The Complainants legal team were awaiting a date for hearing of the employment rights complaints during this period but strangely intervened with correspondence on seeking clarification of quantum in the severance during November 2023- December 2023.
Two worlds collided at that point, causing the Respondent to pause pending a declaration on just who was speaking for whom. The Union emerged from that clarification up to and including execution of the January 2024 public picket in Tralee.
I listened to Mr Cronin as he had a clear recollection of Rationalisation at the business. I considered the 2002 Agreement which benefitted forty-one drivers. By 2006 Collective Agreement, this had fallen through attrition to twenty-two named drivers directly employed at the business.
By 2009 LCR 19437 introduced a Recommendation dated 20 January 2009.
“The Company’s proposals to rationalise the milk collection operations in Co Kerry. Arising from the rationalisation plan the company proposed to reduce the number of milk assembly drivers from 20 to 8 and source out the work to independent hauliers with effect from 31 January 2009.”
1 voluntary severance 6 weeks per year of service inclusive of any statutory redundancy payments plus a lump sum of €7,500 for those drivers affected by the proposed rationalisation plan.
2 If insufficient uptake, LIFO
3 flexibilities for remnant workforce under 2002 agreement followed by a review after 12 months.
This is a clear undisputed account of a radical change era for drivers at the business 2002-2009 and beyond.
I heard extensive evidence from all presents at hearing that seismic change followed 2010 -2023 on how milk collection was undertaken, where tankers increased in size and tachographs were commissioned but not obligatory for drivers.
I heard the complainant when he demonstrated a dissatisfaction with his daily operations, but he had not formalised any inquiry or grievances.
A Union claim on foot of LCR Rec 22429 in April / May 2022 had not left ground floor level and was awaiting feedback from an anomalous claim in Listowel.
I can see that Mr Cronin was also very much at a crossroads at where he fitted at the business as he shared his assertion that his dismissal was triggered by a protected disclosure but could not advance on that in either direct evidence or cross examination.
The Respondent has certainly demonstrated through Mr Dillane’s evidence that a growing exasperation or indeed frustration had evolved regarding interpretation of how and where breaks should be taken and recorded. The Respondent paid for loading and unloading time but marked it separate in the averaging calculations on agreement with the Union.
I heard Mr Dillane confirm release of working time records. This for me signalled a business-like exchange. The Complainant was in good standing at the business and without disciplinary sanction at the time of his dismissal. However, I accept he was vulnerable as one of the last remaining 7 drivers in Kerry LCR 22429. I also accept that he did not appreciate that.
However, against this multi-faceted background of change in numbers and operational units, I listened carefully as Mr Ryan challenged the complainant on his approach to the redundancy.
This is the complainant’s evidence for November – December 2023.
However, I have been asked to decide whether the complainant was unfairly dismissed through an alleged and choreographed redundancy.?
In Component Distributors (CD Ireland) ltd and Brigid Burns UDD 1854, the former Deputy Chair Caroline Jenkinson on behalf of the Labour Court explored the circumstances where a Credit Controller contested her dismissal when the company centralised the finance team north of the border from Dublin to Antrim, making her redundant Section 7(2) (a) of the Redundancy Payments Act 1967.
The Complainant had appealed the validity of her redundancy within the business but had not expanded on it. The appeal did not succeed.
The Court was satisfied that the complainant had been consulted on the redundancy, that she was provided with the rationale for redundancy and offered input in the process and an alternative. Legal representation or cross examination of management was not deemed necessary.
The Court was satisfied with the selection process adopted and accepted that the Dismissal was wholly redundancy connected and not unfair.
I gained some insight from Mr O’Connell’s evidence as he described that the Respondent no longer employed drivers of milk tanks, the change had its roots in 2001 on the direction of 24/7 milk collection. He gave a credible account on how the business had decided to close off directly employed drivers of milk tanks over a 3-year lead in period. I appreciate this was a behind doors discussion.
I accept his evidence that the Respondent had decided to outsource the remainder of the work done by the seven drivers and their manager on 16 August 2023. It may well have assisted if the respondent had exhibited those group minutes as had occurred in Burns, where twenty staff were placed at risk of redundancy as a commercial decision on restructuring.
I am satisfied that this sensitive information was shared by the respondent with the complainant’s union with a request to meet but this was deferred until November 3. At this meeting, I accept Mr O’Connell’s evidence that he simply read out the announcement, not thinking for a minute that he would be an eventual participant in WRC on the topic.
I am satisfied that this was an announcement of “at risk of redundancy “for the cadre of seven drivers and that message was understood by all.
I am satisfied that the Respondent made a commercial decision to conclude direct employment of milk tank drivers for what they described as the market norm of hauliers through service level agreement. I am satisfied that encompassed the seven drivers.
I accept Mr O Connells evidence that the complainant was offered an option to join the cadre of hauliers outside of the redundancy arrangements where he was to revert in 7 days. I also accept that Mr Cronin was offered the option of redeployment as an employee to existing vacancies at the Respondent Factories, Stores, or fertiliser feeds but he did not engage on those options.
I accept that the complainant was not replaced in his role and his truck was sold.
I followed Ms O Carrolls evidence as she chronicled the IR negotiations which transpired before termination.
I can see that the Respondent understood that they had dug deep in resurrecting the historical Redundancy payment of 2009 in LCR 19437 which exceeded the 2023, 3.5 weeks norm. I find this was a two-stage process, voluntary uptake followed by LIFO. This placed the context as compulsory on round two and related to those proposals.
Crucially for me, this did not determine a collective agreement on how redundancies should be managed at the business. Mr Cronin was offered a €25,000 ex gratia payment.
I can see that the Union sought to “tweak the offer “in 2023. It was presented in a take it or leave it fashion and was required to be a full and final settlement which compromised the live employment rights cases. This was not palatable to the complainant and thus declined. I did ask Mr OConnell if this pot still existed in 2025? and was informed that there may be a possibility of this, but the complainant side did not respond to my scoping.
I can see that the last apparent action of the Union, prior to dismissal was to notify of an escalation of the dispute to protest for leverage. This ended when the Complainant decided to proceed with his claims to the WRC Adjudication as is his right to do.
I must now move to explore.
1 Was there a genuine redundancy so as to establish substantial grounds for dismissal?
2 Was the method of selection fair?
3 Was the dismissal conducted in a fair and reasonable manner and within the band of reasonableness for a reasonable employer?
I want to preface my findings to refer to the seminal work on a shrouded redundancy in business. This account reflects an understanding of just how difficult redundancy can be for everyone involved.
JVC Europe ltd v Panisi [2011 IEHC] 279
JUDGMENT of Mr. Justice Charleton
- Redundancy can be a devastating blow. Where economic conditions are difficult, or where the employee who is let go has aged or is experiencing health difficulties, finding alternative employment may be impossible. Years of devotion to an employer count for nothing where technology overtakes the workforce, rendering the labour of those displaced unnecessary; where new methods of work are demanded from those who do not have the skills to respond; or where a product is rendered obsolete. All these are examples of genuine redundancy. As ordinarily understood, redundancy means that a worker is no longer needed. The legal definition, as stated in the legislation which I quote later, mirrors common comprehension. Because redundancy is inevitable if there is no work for workers to do and the workers cease to be needed, it is also lawful. The Redundancy Payments Act 1967, as amended, establishes a floor of rights in compensation for redundancy; circumscribes the use to which dismissal by reason of redundancy can be put; and provides for minimum payments for qualified employees who are subject to this misfortune. In circumstances of insolvency those payments can be met from the public purse.
- A contract of employment can involve both personal and impersonal interaction between employer and employee. Redundancy is not, however, a personal choice. It is, in essence, the external or internal economic or technological reorienting of an enterprise whereby the work of employees needs to be shed or to be carried out in an entirely different manner. As such, redundancy is entirely impersonal. Dismissal, on the other hand, is a decision targeted at an individual. Under the Unfair Dismissals Act 1977, as amended (*the Act of 1977*), the dismissal of an employee may only take place for substantial reasons that are fair. In effect, the contract of employment is protected in law, and it may only be repudiated by the employer for reasons which do not amount to an unfair dismissal. This requires the employer to show substantial grounds which justify the dismissal. The burden of proof, in that regard, is squarely placed upon the employer.
Panisi found that a “dismissal can be constructed and presented as a redundancy “shrouded by an identifiable “cloak.”
Charleton J. emphasised the need to look behind all the evidence in a case to arrive at an accurate finding in this exceedingly difficult area of employment law.
The burden of proof rests firmly on the Respondent in this case to prove the circumstances relied on in the defence of Section 6(4) (c).
The case of St Ledger and Frontline Distribution Ireland ltd [1995] ELR 160 sets a clear objective for a true redundancy.
That it should not be based on Mr Cronin personally or his performance and it should reflect measurable and identifiable impersonality and change at the enterprise.
This case concerned a Warehouse Supervisor who was made redundant and replaced by a worker who the respondent contended was better trained.
The EAT held this was not a genuine redundancy as the statutory definition of redundancy had not been proved.
In the instant case, I have established that the redundancies which occurred on 31 December 2023 followed a company decision to finally cease the business model of directly employed drivers in favour of outsourcing via Service Level Agreement to match the 24/7 aim at milk collection. This had its seeds in 2002 and had manifested at the business at intervals from that year onwards. The Complainant did not complete night work.
Mr OConnor was the last direct hire in 1991. Mr Cronin was the longest server of the trio of complainants, who by October 2023 had witnessed a series of sequential redundancies and retirements. I found a once off reference to proposals for redundancy or conversion in the 2002 Agreement not replicated later. This reflected a fallback position of employment continuance. Mr foley had contended that this Agreement endured for 3 years, I find that it lingered on until 2023, but conversion / fall back work was not explored by the complainant in December 2023.
I am satisfied that at risk of redundancy was the message presented to the Complainant /Union at the joint meetings on 3 and 9 November 2023.
Selection is a moot point as the entire cadre of remaining drivers and their line manager were placed at risk of redundancy.
I have resolved the conflict in evidence in terms of alternatives offered in favour of the respondent as I accept that the complainant was offered consideration of existing vacancies at the business that went untapped.
I also accept that the complainant was offered an opportunity to join the cadre of hauliers on a self-employed basis, albeit not in his own patch. I accept this was not comparable employment.
Consultation occurred, where the complainant was permitted input on his future inside the business, but elected to use that time to maximise the severance package without appealing the redundancy on validity grounds. I understand that and recognise that redundancy was foremost on his mind and wishing to do the best for him and his family.
The Respondent reached for the elevated terms of severance outside of the 3.5 weeks model (inclusive of statutory) to close the deal, incentivise acceptance and transition to the new model. It did not work, and a Dispute arose and was not resolved.
I would have liked to have seen a formal appeal process trialled here, but I have to accept that as the “two worlds “collided own more, the appeal took the form of an IR Dispute complete with protest.
Can the Respondents insistence on a compromise agreement which sought to compromise all live claims before the Respondent as a basis for withholding an ex-gratia payment be deemed unreasonable behaviour?
It is of note that all involved were professionally represented by their Union at that time. An opportunity for informed consent prevailed.
At the peril of repeating myself, once more this is where two worlds collided.
Mr Cronin accepted statutory redundancy and notice pay. That for me equates with his plan to accept redundancy if the price was right and taken together with a recoupment of the remainder of contract, this action suggests proximity at least to acquiescence of his own dismissal.
I am at a loss to understanding whether it was the Union or the Legal advisors who intervened to halt the completion of the compromise Agreement as I don’t have supporting documentation to guide me in this , given it was not delineated in the Union memo of 15 December and later picked up in Ms O’Carroll’s correspondence of 5 January 2024 when she stated .
“… we are aware that your members rejected this offer as they believe that their current cases before the WRC concerning working time are of greater value to the amount offered. These cases were assigned a hearing date of 31 January 2024 by the WRC but have since been cancelled “
Ms O Carroll then moved to reach out to Mr Cronin and colleagues when she wrote on the same date and in the face of imminent protest:
“We have instructed our legal advisors to contact (complainant’s solicitors) to suggest ways in which this hearing can be accelerated such as agreeing a time frame to exchange submissions and to narrow down any other issues in dispute “
I found this a reasonable and pragmatic approach within 7 days of the termination.
However, I must now look at the circumstances to establish whether the dismissal was wholly or mainly connected to redundancy in the legal sense as set out in
Section 7 (2) of the Redundancy Payments Act 1967?
2) For the purposes of subsection (1), an employee who is dismissed shall be taken to be dismissed by reason of redundancy if or one or more reasons not related to the employee concerned] the dismissal is attributable wholly or mainly to—
(a) the fact that his employer has ceased, or intends to cease, to carry on the business for the purposes of which the employee was employed by him, or has ceased or intends to cease, to carry on that business in the place where the employee was so employed, or
(b) the fact that the requirements of that business for employees to carry out work of a particular kind in the place where he was so employed have ceased or diminished or are expected to cease or diminish, or
(c) the fact that his employer has decided to carry on the business with fewer or no employees, whether by requiring the work for which the employee had been employed (or had been doing before his dismissal) to be done by other employees or otherwise, or
(d) the fact that his employer has decided that the work for which the employee had been employed (or had been doing before his dismissal) should henceforward be done in a different manner for which the employee is not sufficiently qualified or trained, or
(e) the fact that his employer has decided that the work for which the employee had been employed (or had been doing before his dismissal) should henceforward be done by a person who is also capable of doing other work for which the employee is not sufficiently qualified or trained,
I find that by the time of the dismissal on 31 December 2023 , Section 7 ( 2) ( b ) and ( c) of the Redundancy Payments Act , 1967 had transpired at the business through complete erosion of the cadre of directly employed drivers and their manager present since the 1990s in favour of the total provision of service by hauliers, who operated in a different way . The business no longer required directly employed drivers.
This had an overture to elements of the Irish Ferries Dispute in 2005, albeit on a much smaller scale. This involved large scale redundancies in favour of agency replacement. This was an IR Dispute eventually settled with the assistance the States Industrial Relations bodies.
In my consideration of the evidence in this case, my attention was drawn to a 1998 claim for a redundancy payment by a John Blade and Kerry Co -operative Dairies ltd RP 93/98 at EAT.
Mr Blade was a delivery man when the respondent took over his employment. Subsequently, he received details of a planned restructuring which sought to redeploy him to Galway via a mobility clause, which he vetoed.
He was also offered severance.
It was the respondent case that the mobility clause should defeat and undermine any claim to Redundancy.
The EAT found that the need for the number of drivers the respondent previously had in Tuam area had ceased or diminished and the complainant’s job which had been phased out and ceased.
Ms Faherty held that this was the language of redundancy.
She went on to find that the issue of mobility could not become a defining issue when redundancy had clearly occurred and found that the complainant was correct in considering himself dismissed on the circumstances which were not defeated by a mobility clause as suitable alternative.
For my part, I can safely conclude that there had not been any disturbance in the employment relationship for Mr Cronin. I have not found any attempt by the Respondent to antagonise the complainant by making him redundant.
I understand that the complainant genuinely believes that his complaints to the WRC sealed his fate, however, he has not proved this in evidence.
I would have liked to have seen a more robust documentation on the change process as I accept Mr Cronin’s evidence that he did not see it coming.
Protected Disclosure:
I am not at one with the Complainant when he sought to frame his claim for unfair dismissal against a protected disclosure submission to the WRC on 19 December 2022. I am even more apart when Counsel sought to vary the protected disclosure from the WRC Inspectorate to the WRC Adjudication service at the 23.5 hour at hearing.
There was no mention of this on the WRC complaint form, where the narrative referred to a complaint.
On that day he made one complaint regarding to WRC Inspection.
“My Employer is not keeping statutory records “He sought an investigation under the Organisation of Working time Act 1997.
On 5 April 2024, the WRC Inspectorate declared that records were maintained by a tachograph where the Road Safety Authority carried authority to inspect those records not WRC.
On 19 December 2022, four complaints were set out to WRC Adjudication (all addressed above)
I have no indication that the Complainant made a Protected disclosure in accordance with Section 5 of the Protected Disclosure Act 2014, as amended. (SI 510/2022)
- (1) For the purposes of this Act “protected disclosure” means, subject to subsection (6)]and sections 17 and 18, a disclosure of relevant information (whether before or after the date of the passing of this Act) made by a worker in the manner specified in section 6, 7, 7B,] 8, 9 or 10.
(2) For the purposes of this Act information is “relevant information” if—
(a) in the reasonable belief of the worker, it tends to show one or more relevant wrongdoings, and
(b) it came to the attention of the worker [in a work-related context].
The Complainant has submitted that the complaints raised constituted Protected Disclosures to Director General of WRC
I found no reportage through the company policy on Protected disclosures.
Given that Mr Cronin, as worker and shareholder had maintained a dossier of tachograph records 2022-2023 and had stopped recording rest time in his own case, it is safe to presume that he was in conflict with his employer.
I asked if these matters had been raised at shareholder meetings and there was no material evidence of this or a road safety authority report on compliance.
The complainant demonstrated an awareness of the role of the RSA in this regard.
I must conclude that these matters were interpersonal grievances exempted under section 5 A.
(5A) A matter concerning interpersonal grievances exclusively affecting a reporting person, namely, grievances about interpersonal conflicts between the reporting person and another worker, or a matter concerning a complaint by a reporting person to, or about, his or her employer which concerns the worker exclusively, shall not be a relevant wrongdoing for the purposes of this Act and may be dealt with through any agreed procedures applicable to such grievances or complaint to which the reporting person has access or such other procedures, provided in accordance with any rule of law or enactment (other than this Act), to which the reporting person has access.]
The tension between the Respondent and the complainant was more of incredulity at the complainants perceived defiance as articulated by Mr Dillane in his evidence than a targeted personalised attack.
I found the Respondent to be practical in respect of the employment rights complaints rather than combative or reactive as attributed to them by the Complainant.
The bigger picture confirms that the Respondent completed the planned concluding chapter in the devolution of direct employment of drivers by entire cadre cessation on 31 December 2023. This amounted to a redundancy in law.
The cadre has not been replaced. The new system has been evaluated and endorsed at the company. The trucks have been sold. Third party contractors became the market norm.
A genuine redundancy occurred in the complainant’s case, and he participated in the shaping of the final stages of that process without appealing the principle of redundancy in law, at least.
I understand that he sought to safeguard his planned future on combining farm with work by seeking to secure an optimal severance.
Consultation occurred with the Union, but Mr Cronin did not engage on the alternatives offered in house prior to the redundancy. I found he made an honest reflection during cross examination.
I found that universal selection from a final remnant pool of seven drivers of all drivers for redundancy was ambitious but was not unreasonable. They were the last Drivers standing, the final curve of the ball.
I could not identify a contravention in an existing agreement on how redundancies should operate at the business. Conversion, a remnant of an earlier Agreement was not trialled as the Dispute went public and then boomeranged back into the quasi-judicial forum of this Tribunal, where it has remained.
I would have liked to have seen a separate and parallel process which prefaced the complaints to the WRC on 19 December 2022 onwards. However, I cannot accept that by seeking to conclude a compromise agreement with represented parties that the respondent behaved unreasonably in seeking to safeguard their business when two worlds collided.
I must conclude that some tensions surrounding the cessation of recording time were visible in the staff relations between Mr Cronin and various aspects of the business at line manager, haulier and marking time, however, I have not found this to be a defining issue in the face of a redundancy situation.
I have found that the Respondent can rely on the defence that the complainant was dismissed mainly by redundancy in accordance with section 6(4) (c) of the Act.
He was not unfairly dismissed.
Decision:
CA-00061795-001 Section 8 of the Unfair Dismissals Acts, 1977 – 2015 requires that I make a decision in relation to the unfair dismissal claim consisting of a grant of redress in accordance with section 7 of the 1977 Act. I have found that the complainant was not unfairly dismissed.
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Dated: 1st September 2025
Workplace Relations Commission Adjudication Officer: Patsy Doyle
Key Words:
Claim for unfair dismissal. |