Labour Court recommends five weeks’ pay per service year for Federal Mogul redundancies

In 2004, the Labour Court recommended that Federal Mogul increase its redundancy offer for the closure of its Naas facility, where 59 jobs were to be lost. The recommendation, dated 2 July 2004, was for five weeks’ pay per year of service plus statutory entitlements, subject to agreement on an orderly wind-down. The Services Industrial Professional Technical Union and Technical, Engineering and Electrical Union sought seven weeks’ pay per year of service, statutory entitlements and eight weeks’ pay in lieu of notice. Federal Mogul had offered three weeks’ pay per year plus statutory entitlements, citing financial difficulties. The Court took account of those circumstances and the Company’s precedent of five weeks’ pay for voluntary redundancies, plus statutory entitlements and notice pay.