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Voluntary redundancy agreements examined

Objavljeno: 27 May 2000

The majority of redundancy situations across the Irish economy during 1999 tended to involve relatively small numbers, according to the annual survey of severance deals in the private and public sectors recently published by the Dublin-based independent weekly magazine, /Industrial Relations News/ (IRN) in spring 2000.

According to a recent survey of voluntary redundancy agreements in Ireland in 1999, the highest settlements were found in pharmaceuticals/chemicals/healthcare and food/drink/ tobacco while settlements in textiles - hard hit by market liberalisation - were among the lowest.

The majority of redundancy situations across the Irish economy during 1999 tended to involve relatively small numbers, according to the annual survey of severance deals in the private and public sectors recently published by the Dublin-based independent weekly magazine, Industrial Relations News (IRN) in spring 2000.

IRN reports that the opening up of the textiles market to competition from outside the EU, as part of world trade liberalisation, has decimated the industry in Ireland. Some 15,000 people remain employed in this sector, with 1,500 redundancies recorded during 1999. More than half of these job losses were at the US-owned Fruit of the Loom operations in County Donegal in the north of the country. The redundancy settlement here was based on a formula worth 3.5 weeks' pay for each year of service, plus the statutory legal minimum of half a week's pay before the age of 40 and a full week for every year thereafter. These terms - slightly lower than the average in the rest of the economy - were in fact one of the more generous packages in the textiles sector, exceeded only by Schiesser in Clonmel, County Tipperary, where 4.5 weeks' pay per year plus statutory payments were applied. More typical packages in the textile sector were around the one-two weeks' pay per year of service mark.

The two sectors with the highest severance packages were pharmaceuticals, chemicals and healthcare, and food, drink and tobacco. Most settlements in the pharmaceuticals area were in the five-six weeks' pay per year of service range. In the food and drink area, many smaller redundancy deals had terms of six weeks' pay or more. Showerings, also in Clonmel, had the largest voluntary programme, with a "ceiling" of IEP 80,000 per worker.

Settlements in the electronics sector were slightly lower - between three and five weeks' pay for each year of service. The largest package was six weeks' pay plus statutory payment, offered at Nortel on a voluntary basis, for about 120 workers. Nortel's unionised grades also received a service-related termination bonus of IEP 700-IEP 7,500.

In metals and engineering, typical packages were around the four weeks' pay plus statutory payments mark, with similar deals in rubber and plastics.

Eurofound priporoča, da to publikacijo navedete na naslednji način.

Eurofound (2000), Voluntary redundancy agreements examined, article.

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