FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : ST. PATRICK'S HOSPITAL - AND - PNA, SIPTU, IMPACT - INTER UNION GROUP INTER UNION CONVENOR DIVISION : Chairman: Mr Hayes Employer Member: Mr Murphy Worker Member: Mr Shanahan |
1. (1) - Retention / protection of clause in Defined Benefit Pension Scheme and (2) - terms of Defined Contribution Scheme.
BACKGROUND:
2. The matters before the Court for hearing have already been the subject of a Labour Court hearing in November, 2013. At that hearing the Court sought agreement for the appointment of Facilitators/Assessors to assist in reaching a resolution to issues regarding Employer contribution levels to the Defined Contribution (DC) Scheme for staff transferring from the Defined Benefit (DB) Scheme and how best to also address the deficit in the DB Scheme. Following the Facilitators/Assessors Report the matter returned to the Labour Court for a definitive Recommendation.
As agreement was not reached, the dispute was referred back to the Labour Court in accordance with Section 26(1) of the Industrial Relations Act, 1990. A second Labour Court hearing took place on the 18th March, 2014. Both parties submitted further up-to-date submissions to the Court.
UNIONS' ARGUMENTS:
3. 1.The proposals put forward by Management are not acceptable to the Workers concerned especially to those with longer service that were most recently in the DB Scheme.
2. The Employer has both the obligation and the financial resources to increase its contributions to both Schemes.
COMPANY'S ARGUMENTS:
4. 1.The Employer is a registered charitable organisation and does not have the funds to address the deficit in the DB Scheme other than in accordance with the Section 50 proposals approved by the Pensions Board.
. Management is of the view that staff transferring from the 2005 DB scheme should do so on the existing terms of the DC Scheme.
RECOMMENDATION:
Having considered the submissions of both parties to this dispute the Court recommends as follows:-
1. That the employer and employee contribution rate to the defined contribution scheme of 10% and 4% of salary respectively be adjusted to make provision for a further voluntary matching employer and employee contribution of up to 2% thereby bringing the maximum contribution to 12% and 6% respectively in circumstances where the full additional voluntary contribution is taken up by an employee.2. That the parties engage with each other at three-yearly intervals to take the necessary steps to ensure that the legacy Defined Benefit Scheme is sufficiently funded to fully meet its liabilities.
The Court so recommends in full and final settlement of this dispute.
Signed on behalf of the Labour Court
Brendan Hayes
15th May, 2014______________________
JFDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to John Foley, Court Secretary.