FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : CORK CORPORATION - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Keogh Worker Member: Mr Rorke |
1. Superannuated overtime.
BACKGROUND:
2. The dispute concerns 14/16 workers who are employed in the Corporation's garage. The workers are required to work 15 hours overtime per week as follows:-
Monday to Friday - 4.30 to 6.30 p.m.
Saturday - 8.00 a.m. to 1.00 p.m.
The Union's claim is that the worker be allowed to pay their full superannuation liability on a weekly basis, thereby avoiding having to pay the money in a lump-sum on date of retirement or have it deducted from their pension.
In 1978, a similar claim to the present one was made on behalf of 140 general operatives in the Corporation. Labour Court Recommendation LCR4789 conceded the claim, and on the 23rd of May, 1979 the Minister for the Environment approved the proposal to permit superannuated overtime for the 140 workers. On the same day, the Minister issued a circular (S2/79) to all local authorities, to the effect that he would not approve any future overtime for superannuation purposes, except at the time a worker retired.
The dispute was referred to the Labour Relations Commission and a conciliation conference took place on the 22nd of October, 1998. As the parties did not reach agreement, the dispute was referred to the Labour Court on the 3rd of November, 1998, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 10th of December, 1998, in Cork. Present at the hearing were union spokespersons on behalf of the AEEU and the TEEU.
UNION'S ARGUMENTS:
3. 1. The overtime done by the workers is not optional. It is part of their employment and is of a regular and recurring nature, something that the Corporation does not dispute. This is one of the main conditions of superannuated overtime. The workers should be allowed to pay the superannuation on a weekly basis.
2. If the workers are forced to pay the superannuation on retirement, pensions and lump sums will be seriously eroded.
3. On retirement, payment is calculated on the average of the previous three years. If a person only worked 5 hours overtime per week due to age, illness, etc. for these three years, rather than the present 15 hours, the ultimate pension will not reflect the many years of overtime worked.
CORPORATION'S ARGUMENTS:
4. 1. If the present claim is conceded, it will give rise to repercussive claims from other Government departments.
2. Circular letter S12/91 repeats the policy set down in S2/79, i.e., that the superannuation will be taken in a lump sum at the time of retirement. In effect, concession of the claim is statute barred.
3. The issue has been the subject of many claims since 1978 but has never been conceded. The current methods of treating overtime for pension purposes is reasonable.
RECOMMENDATION:
It is clear to the Court that the overtime which is at issue in this dispute is regular, rostered and mandatory under the employees' conditions of employment. In the Court's opinion, the hours involved are part of the normal working hours of the workers concerned. Equally, the earnings in respect of those hours are part of their normal weekly pay. From an industrial relations perspective, the Court can see no good reason as to why it should be treated otherwise for superannuation purposes.
In the specific circumstances of the workers concerned, the Court sees considerable merit in the Union's claim and would normally be disposed towards recommending its concession. It is recognised, however, that while Circular Letter S7/91 remains applicable, the Corporation would be precluded from implementing such a recommendation.
The Court recommends that the parties should raise this matter with the appropriate authorities, with a view to obtaining an accommodation within which the current difficulties can be resolved in line with the general principles set out above.
Signed on behalf of the Labour Court
Kevin Duffy
17th December, 1998______________________
C.O'N./D.T.Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.