INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
- AND -
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
TECHNICAL, ENGINEERING AND ELECTRICAL UNION
Chairman: Mr Hayes
Employer Member: Ms Doyle
Worker Member: Ms O'Donnell
1. Proposed changes to the Pension Scheme.
2. This dispute could not be resolved at local level and was the subject of a Conciliation conference under the auspices of the Workplace Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on the 23rd February 2016, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 21st April, 2016.
3.1.The DB scheme is in a healthy position and it is not in deficit.
2. The DB scheme is a fundamental part of the workers terms and conditions and is contained in the union management collective agreements..
3. The rationale for changing the DB scheme has nothing to do with its current funding status.
4. 1.The Company views DB plans as unsustainable, not fit for purpose and a historical anachronism which places unreasonable costs and the sole risk burden on the employer.
2.In 2010 additional funding was required as PIRPP was in significant deficit.
3.Over the past five years, Pfizer fully paid for the pension levy for DB members, representing a total additional cost of €10 million to the Company.
The Court has given careful consideration to the extensive submissions of both sides in this dispute. The Court recommends that the Company formally set out to the Unions the precise policy and financial reasons for the proposed changes to the structure of the current pensions schemes.
Thereafter the Unions should engage with the Management with a view to agreeing a new pension schemes that meet the twin objectives of aligning the Company’s needs and the benefits contained in the current scheme. The talk’s process should address the position of both current and future employees and should make provision for staff transitioning from the current to the new scheme.
The Parties should conclude such discussions within 12 weeks of the date of this recommendation. Any issues outstanding between the parties at that time should be referred back to the Court for a definitive recommendation.
The Court so recommends.
Signed on behalf of the Labour Court
9th May 2016Deputy Chairman
Enquiries concerning this Recommendation should be addressed to Clodagh O'Reilly, Court Secretary.