FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : DUBLIN VOLUNTARY HOSPITALS (REPRESENTED BY THE HEALTH SERVICE EMPLOYERS AGENCY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Employer Member: Worker Member: |
1. Dispute concerning the inclusion of rostered overtime in pensions.
BACKGROUND:
2. The dispute concerns 3,000 non-nursing workers who are employed by the Dublin Voluntary Hospitals and Nominated Health Agencies. In 1994, the Union submitted a number of claims seeking improvements in the provisions of the Voluntary Hospital Superannuation Scheme. Following the failure of local level negotiations, the dispute was referred to the Labour Relations Commission in 1996. Subsequently two conciliation conferences were held in February, 1996 and a comprehensive agreement was reached on a number of issues. However, agreement could not be reached on the Union's claim for the inclusion of rostered overtime in pensions. This issue was referred to the Labour Court by the Labour Relations Commission in August 1996. A Court hearing was held on the 19th November, 1996.
UNION'S ARGUMENTS:
3. 1. The Voluntary Hospitals and Nominated Health Agencies Superannuation Schemes were introduced in 1985. They are a direct replica of the 1977 Schemes applicable to the same grades employed by the Eastern Health Board, Beaumont Hospital and St. James's Hospital. The provisions of the 1977 Scheme allow for overtime payments to be reckoned for Superannuation purposes under certain conditions at cessation of employment.
2. The conditions as per circulars S2/79 and S12/91 from which all Health Service Schemes operate under are as follows:
1. Scheduled work attached to the employment
2. The overtime was not optional
3. The overtime was part and parcel of the employment
4. Was of a regular and recurring nature
5. Could only be performed outside of normal hours
Staff are rostered on a 5/5 for portering and 5/6 for household and catering grades. Hours worked over 39 hours are rostered overtime. Workers are obliged to provide 24 hour, 7 day, 52 week cover as required and the overtime worked by staff complies with the conditions of the circular. This cover is provided for by the rostering of all staff for overtime on a permanent basis.
3. Workers employed by the E.H.B., Beaumont and St. James's hospitals already receive this benefit on retirement.
4. It is unfair and inequitable that the workers concerned should retire on less favourable grounds than those staff employed by other health agencies who happen to be covered by a similar but non-statutory scheme.
HOSPITALS' ARGUMENTS:
4. 1. The standard working week in the Health Service for non-nursing workers is 39 hours on a 5 over 7 basis. The arrangement presently existing in those Voluntary Hospitals whereby porters work 39 hours Monday - Friday and in addition work Saturday/Sunday on an overtime basis is highly unusual and out of line with rostering arrangements for 7 day cover. Other non-nursing personnel work 39 hours on a 5 over 6 basis and work Sunday on overtime. Over the past number of years Management has tried unsuccessfully to bring rostering arrangements for these staff into line with those operated in the wider Health Service.
2. There is no logic in providing weekend cover on an overtime basis. It is neither cost-efficient nor effective and is totally unnecessary to service requirements. The requisite cover could easily be provided on a 5 over 7 day basis with Saturday/Sunday being worked as part of a 39 hour week.
3. Concession of the claim could have the effect of further reinforcing the current rosters which are neither efficient nor desirable. Concession of the claim would also have significant repercussions in the wider Public Service.
4. The Commission on Public Service pensions has been established to examine and report on the pension terms of public servants (including the Health Services). It is, therefore, open to the Union to have this issue examined by that body.
RECOMMENDATION:
The Court has fully considered all of the views expressed by the parties in their oral and written submissions.
The Court notes that given the manner in which the work is carried out and the necessity for seven day cover that the overtime worked may be regular and recurring.
The Court recognises that the level of Pensions being attained by the workers here concerned can be very small.
It is the view of the Court that employees should receive adequate and reasonable Pension benefits and that these should reflect the employees' earnings and service.
However given the basis on which the overtime is worked in this case the Court takes the view that the authors of the circulars regarding the treatment of overtime payments did not envisage the circumstances here described.
To simply include the overtime payments as applied here for superannuation purposes the Court considers will only create anomalies for the future and result in the distortion of pension payments to individuals.
The Court considers the parties should give further consideration to this matter if necessary seeking the assistance of a conciliation officer to assist in discussions.
In the event that the parties are unable to reach agreement the Court, at the request of the parties, will review the outcome of the discussions and make a recommendation.
Signed on behalf of the Labour Court
Tom McGrath
18th December, 1996______________________
T.O'D./S.G.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Tom O'Dea, Court Secretary.