LCR16047

FULL RECOMMENDATION CD/98/507 RECOMMENDATIONNO.LCR16047 (CC98/1176) INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : TINSLEY WIRE (IRELAND) LIMITED (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION TECHNICAL, ENGINEERING AND ELECTRICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Keogh Worker Member: Mr O'Neill

SUBJECT:
1. Redundancy Terms.



BACKGROUND:

2. The Company is a member of the Bekaert Group (Belgium). The Company has manufactured galvanised steel wire and steel wire products at its plant in Finglas, since 1953.

The dispute refers to the Company's decision to re-structure its operation and reduce employee numbers from 66 to 40. The 26 redundancies are made up as follows:

Maintenance - 3
Factory - 16
Administration - 7

The parties met to discuss redundancy terms on the 9th of September, 1998, and since then the galvanising plant has ceased to operate. The severance terms offered by the Company were 2.5 weeks pay per year of service, plus statutory, plus minimum notice pay, subject to a cap of £30,000. The Unions are seeking 5 weeks' pay per year of service, plus statutory, plus minimum notice pay with no capping. It is hoped that a sufficient number of workers will take voluntary redundancies without having to introduce compulsory redundancy.

The dispute was referred to the Labour Relations Commission and a conciliation conference took place on the 29th of October, 1998. As the parties did not reach agreement, the dispute was referred to the Labour Court on the 2nd of November, 1998, in accordance with Section 26 (1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 1st of December, 1998.


UNIONS' ARGUMENTS:

3. 1. The Company was formerly part of the Unidare companies. Previous redundancy packages for some of these companies included;

Unidare Limited
4.5 weeks' pay per year of service, plus statutory and no maximum applied.

Transformer Limited & Unidare Conductors Limited
3.5 weeks' pay per year of service, plus statutory and no maximum for both companies.

The workers deserve at least the same type of redundancy package.

2. Many of the workers concerned have long service with the Company, some of them up to 40 years. They are at an age where it would be difficult to secure alternative work when they become redundant.



COMPANY'S ARGUMENTS:

4. 1. The Company has struggled in recent years to remain competitive and cost-effective. Accumulated losses for the years 1992-1997 were £435,000. The Company will lose money this year and the forecast is that the next few years will show a similar trend.

2. It was decided that the whole administrative, maintenance and productive cost bases had to be radically altered. This included discontinuing the galvanising plant and reducing the work force by 26. The Unions have accepted that these changes are necessary if the Company is to become competitive again.

3. The redundancy terms on offer are based on a severance package first negotiated in October, 1993, and has formed the basis of all redundancy settlements since then.






RECOMMENDATION:

The Court recommends that the Company's severance package should be increased to 3.5 weeks' pay per year of service with a capping of £42,000, plus statutory entitlements plus pay in lieu of notice payments.

These terms should be accepted in full and final settlement of the claim.


The Court notes that there are also ongoing discussions between the parties on an early retirement formula.



Signed on behalf of the Labour Court



Caroline Jenkinson
11th December, 1998______________________
CO'N/BCDeputy Chairman



NOTE

Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.