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2002

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LCR17284

FULL RECOMMENDATION

CD/02/259
RECOMMENDATIONNO.LCR17284
(CC01/2663)
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990



PARTIES :
ANGLO IRISH BEEF PROCESSORS
(REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION)

- AND -

SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION


DIVISION :

Chairman: Mr Duffy
Employer Member: Mr Keogh
Worker Member: Mr O'Neill
SUBJECT:
1. Re-hearing arising from LCR16939.


BACKGROUND:

2. This is a re-hearing arising from Labour Court Recommendation LCR16939. In that recommendation, the Court indicated that the dispute could be referred back to the Court if the parties failed to reach agreement on outstanding issues. The issues currently outstanding are as follows:-







Redundancy Lump Sum:


Unions' Arguments

3. 1. The redundancy lump sum calculated on the basis of 22 months normal pay inclusive of the current level of statutory for 25 years' serviceapplied pro-rata per year of service. However, settlement should not prejudice the position of employees in the event of an upward revision of the statutory redundancy provisions in the future.

2. Dawn Meats in Mayo agreed terms in February 2001 providing for four weeks pay per year of service plus statutory entitlement.

3. Bonus schemes are a feature of the industry and form an essential part of normal pay. The Court is requested to endorse the unions' method of calculating normal weekly pay as set out in the Redundancy Payments Acts.

Company's Arguments

4. 1 Redundancy lump sum calculated on the basis of 14 months basic pay inclusive of statutory for 25 years' service applied pro rata per year of service, is the company's final position and which is deemed to be fair and reasonable for employees who are voluntarily severing their own employment.

2. The company is opposed to the unions' proposal to have a review clause built into the new agreement.

Duration of Lay-Off

Unions' Arguments

5. 1. The employees should have the right to the terms of whatever level of redundancy pay is agreed upon completion of six months lay-off.

2. The Company is seeking a mechanism of extending the six month period provided for in Labour Court Recommendation LCR16939. The effect would be to
negate any benefit to workers under the scheme.

Company's Arguments

6. 1. The Company should have the right to reject an application for redundancy terms on the grounds of being able to provide employment within four weeks as
provided for in the Redundancy Acts.

2. The Company has previously explained to the Court the nature of the industry vis-a-vis the cattle supply situation which generates high and low periods of activity within the industry. It would seem unreasonable to make an employee redundant and then within a short period require his/her skills to meet any upturn in trade.








Exceptional Circumstances

Unions' Arguments

7. 1.The Unions are opposed to any agreement which includes a clause for "exceptional circumstances" as employees would suffer loss as a consequence.

Company's Arguments

8. 1. Any agreement should have an "exceptional circumstances" clause indemnifying the Company against applications by employees in circumstances such as the
recent Foot and Mouth epidemic.


RECOMMENDATION:

Having considered the submissions of the parties the Court recommends as follows in relation to each of the items referred for investigation.

Redundancy Lump Sum
The redundancy lump sum should be calculated on the basis of 19 months pay exclusive of statutory entitlements for those with 25 years' service and pro-rata for those with more or less service.

The sum should be calculated by reference to normal pay as defined by the Redundancy Payments Acts 1967-1991.

Period of Lay-Off
The Court does not recommend that the six month period of lay-off referred to in Recommendation LCR16939 should be extended in the manner proposed by the Company.

Exceptional Circumstances
In view of the definitional difficulties involved, the Court does not recommend that a provision be inserted in the agreement to cover "exceptional circumstances". The Court does suggest that should circumstances arise in the future which either party regards as exceptional as to warrant a departure from the terms of the agreement, this could be raised with the other party and if necessary processed through normal disputes procedure.



Review
The Court notes that the Union wished to have a facility to review the terms of any agreement reached in the event of significant changes being made in the statutory redundancy scheme. The Court does not regard this position as being unreasonable.
The Court notes that the Company respects the Unions' right to process claims but that it does not accept, by implication or otherwise, that a change in statutory arrangements could provide grounds for a change in any agreement concluded.



Signed on behalf of the Labour Court



Kevin Duffy
11th October, 2002______________________
LW/BRDeputy Chairman



NOTE

Enquiries concerning this Recommendation should be addressed to Larry Wisely, Court Secretary.




 
 
 
 
 
 
 
 
 

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