SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990
(REPRESENTED BY STRATIS)
- AND -
DIAGEO GROUP OF UNIONS (GSU, CONNECT, SIPTU)
1.Pay increase, pensionability of pay, medical centre benefits post retirement, bonus/profit share.
The Court is clear that the parties’ inability to address issues tabled by the employer as regards the sustainability of the Guinness Ireland Group Pension Scheme (GIGPS) impacts severely on the conduct of normal relations between the parties and also understands that both parties accept that the issues surrounding the scheme are serious. The Court is clear that the achievement of a resolution to the dispute before the Court is significantly hampered by the overhanging reality of the challenges facing the pension scheme.
The Court, in earlier recommendations which it understands were accepted, set out mechanisms for engagement between the parties in a time lined process intended to achieve necessary agreement in relation to pension scheme matters. The Court understands that no resolution to the matter has been found.
The Court believes that it is imperative for real constructive engagement to now take place in relation to the matters facing the GIGPS. The Court has framed this Recommendation in the context of the parties’ shared acceptance in the context of operation of the annual merit salary review of the serious situation of the GIGPS as regards costs and risk and of the requirement not to worsen that situation through the outcome of the salary review.
The Court therefore recommends that the employer should apply an increase of 2.5% with effect from 1stOctober 2019. That increase should be applied in accordance with normal arrangements for application of increases arising from the annual merit salary review.
It should be applied as a pensionable increase to members of the Defined Contribution Pension scheme with effect from 1st October 2019.
The increase should be applied as a non-pensionable increase to members of the GIGPS with effect from 1st October 2019.
The parties should immediately commit to comprehensive engagement to achieve a resolution to the issues facing the GIGPS over a twelve-week period commencing on 1st May 2021. That engagement should take place locally in the first instance and through procedures as necessary up to and including a referral to the Court if necessary.
Arrangements for the conversion from an agreed date of the non-pensionable 2.5% increase to the pay of members of the GIGPS to a pensionable increase should form part of any agreement on the resolution of the serious issues facing the GIGPS.
The Court so recommends
Enquiries concerning this Recommendation should be addressed to Ceola Cronin, Court Secretary.