Bite Size HR: LRC Issues Recommendation on Lagan Brick Dispute

Peninsula Team

July 24 2012

The Labour Court has today issued a recommendation that workers involved in the dispute at the Lagan Brick in Kingscourt Co Cavan should be paid an improved redundancy package. This follows a Labour Court hearing last week which they (Lagan Brick) declined to attend.

Last December, the Company decided to close the Kingscourt plant. Since then, the 25 workers have been protesting outside the plant over severance pay terms and future employment opportunities.

RTE has reported that the Labour Court Deputy Chairman Brendan Hayes said it was "regrettable" that Lagan Brick had not attended the hearing - as the Court would have benefitted from the employer's perspective on the issues between the parties. The Labour Court has recommended;

  • Workers should be paid their statutory entitlements plus an additional one week per year of service.
  • The extra payment should be capped at €700 per week for day workers, €800 for craft workers, and €1000 for night workers.
  • The statutory redundancy pay should be paid immediately.
  • The ex-gratia payment (one extra week) should be paid in two portions.
  • The first part should be paid immediately with their statutory entitlements.
  • The second half should be paid either when 50% of the company's remaining stock of bricks have been removed without disruption, or when ownership of the company changes hands, or within six weeks of the first payment.
  • Lagan Brick should undertake - without obligation - to favourably consider the workers concerned for future employment if and when the plant recommences production.

SIPTU official John Regan said the union had written to the company seeking a meeting to discuss implementation of the Labour Court recommendation. However, the recommendation is not binding on the Company and so far the Union has received no response.

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