FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : NCAD - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Grier Worker Member: Ms Ni Mhurchu |
1. Calculation Of Reckonable Service For Pension Purposes. Extension Of Deadline For Purchase Of Prior Service For Pension Purposes. Rate Of Pay For Calculation Of Prior Service.
BACKGROUND:
2. The claim before the Court is on behalf of Eligible Part Time Lecturers (EPLs) and Eligible Part Time Technicians(EPTs). The claim concerns the calculation of reckonable service for pension purposes, an extension of the deadline for purchase/payment of prior service for pension purposes and the rate of pay for calculation of prior service. The grade of EPL came into existence in 1991. None of the workers in these grades had access to the College's superannuation scheme when they were appointed. Most of the workers paid into a private pension scheme. In December, 2001 legislation by the way of the Protection of Employees (Part Time Work) Act, 2001 was introduced which the Unions members believed would allow them to gain access to the College's pension scheme. The workers did not gain access to the scheme until 2004 and due to the long delay were faced with making back payments to December, 2001. Subsequent to this a claim was made to allow access to the College's pension scheme on a back dated basis to 1991. This claim was conceded but the backdated contributions were assessed at the rate of pay in 2001 and had to be paid back by December 2007.
The dispute could not be resolved at local level and was the subject of a Conciliation Conference under the auspices of the Labour Relations Commission. As Agreement could not be reached, the dispute was referred to the Labour Court on the 6th November, 2007 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 7th February, 2008
UNION'S ARGUMENTS:
3. 1 The purchase of past service should be at the historic rate not at December 2001 rates of pay.
2 The introduction of the employees concerned to the College's pension scheme was delayed until 2004. The Department of Education and Science should exercise its prerogative under clause 34 of Department of Finance Circular 20/2005 to extend the closing date for payment of back contributions.
3 The December 2007 deadline for back payments and the cost based on rates of pay at 2001 presses the employees concerned to the limit in financial terms.
COMPANY'S ARGUMENTS:
4. 1 The College is not in a position to change the basis of calculation for past service prior to 20th December, 2001 nor to extend the date of 31st December, 2007.
2 The cost of purchasing past service prior to 20th December, 2001 was agreed on the basis that the Protection of Employees (Part Time Work) Act, 2001 commenced with affect from that date.
3 There has been a concession to the employees in that the payment of back contributions in respect of previous service will be allowed at the salary applicable on 20th December, 2001 and not at current rates.
RECOMMENDATION:
The case before the Court made by the Union on behalf of Eligible Part Time Lectures (EPL) and Eligible Part Time Technicians (EPT), concern the following claims :
•past service prior to 20th December 2001, should be paid at historic rates rather than the stipulated December 2001 rates,
•service prior to their EPL/EPT status (1991) should be reckonable for pension purposes,
•extension of the 31st December 2007 deadline for the purchase of back service contributions.
Following clarification from the HEA, the College outlined its position as follows:
•past service must be paid at 20th December 2001 rates of pay,
•there would be no extension of the 31st December 2007 deadline,
•pre EPL/EPT contract service, those part time hours that informed the decision regarding EPTA/EPL status, may be purchased as pensionable service at 20th December 2001 rates.
At the Court hearing NCAD stated that it was prepared to extend the deadline and made an offer to extend it to 31st December 2010, however, it was not in a position to allow payments at historic rates of pay. A letter to this effect was sent to the Union and copied to the Court.
Having considered the positions of both sides the Court does not find in favour of the Union’s claim for payment of back contributions at historic rates. The Court recommends that NCAD’s offer as outlined in its letter dated 11th February 2008 should be accepted in full and final settlement of the Union’s claim.
The Court so decides.
Signed on behalf of the Labour Court
Caroline Jenkinson
3rd March, 2008______________________
DNDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to David P Noonan, Court Secretary.