Labour Court Database __________________________________________________________________________________ File Number: CD88933 Case Number: LCR12292 Section / Act: S67 Parties: LOCAL AUTHORITIES EMPLOYING PART-TIME FIREMEN - and - IRISH TRANSPORT AND GENERAL WORKERS' UNION;AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION;FEDERATED WORKERS' UNION OF IRELAND |
Claim on behalf of 2,000 part-time firemen for an increase in ex-gratia payment on retirement.
Recommendation:
7. Having considered the submissions made the Court recommends
that the maximum retirement gratuity be increased to three times
the inclusive annual allowance with proportionate increase payable
down the existing range of entitlements.
Division: Mr O'Connell Mr Shiel Mr Walsh
Text of Document__________________________________________________________________
CD88933 RECOMMENDATION NO. LCR12292
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: LOCAL AUTHORITIES EMPLOYING PART-TIME FIREMEN
(REPRESENTED BY THE LOCAL GOVERNMENT STAFF NEGOTIATIONS BOARD)
AND
IRISH TRANSPORT AND GENERAL WORKERS' UNION
AMALGAMATED TRANSPORT AND GENERAL WORKERS' UNION
FEDERATED WORKERS' UNION OF IRELAND
SUBJECT:
1. Claim on behalf of 2,000 part-time firemen for an increase in
ex-gratia payment on retirement.
BACKGROUND:
2. The present retirement gratuity payable was established in
1985 following a Labour Court hearing (LCR9605 refers) in which
the Court recommended acceptance of the Board's offer which, inter
alia, provided:-
(i) All retained fire service personnel to retire on
reaching 55 years' of age. The appropriate gratuity
to be paid on retirement at age 55 or earlier if
certified medically unfit,
(ii) The gratuity to be calculated on the basis of 1/12th
of the inclusive annual retainer in the final year of
service for each year of service up to age 55 years'
subject to:-
(a) no gratuity being payable to those retiring with
less than 12 years' service, and
(b) the maximum gratuity payable to be 30/12 the
inclusive annual retainer in the last year of
service;
(iii) For a transitional period of two years' from 1st
January, 1986, the retirement gratuity to be
calculated as outlined above subject to the following
modifications:
(a) the minimum service necessary to qualify for a
gratuity to be 9 years' and the maximum gratuity
to be 36/12 the inclusive annual retainer in the
last year of service,
and
(b) service obtained after 55 years' of age may
reckon in calculations.
This was rejected by the Unions but the monetary terms were
implemented by the Board.
3. In August, 1988 the Union submitted a claim for an increase in
the retirement gratuity payable to part-time firemen to provide
for one year's annual allowance after five years' service and for
every five years' service thereafter, subject to a maximum of
seven years' allowance for thirty-five years' service and over.
The Board rejected the claim.
4. The claim was referred to the conciliation service of the
Labour Court on 27th October, 1988. A conciliation conference was
held on 25th November, 1988. As no agreement was possible both
parties consented to a referral to the Labour Court for
investigation and recommendation. A Court hearing was held on
19th January, 1989.
UNIONS' ARGUMENTS:
5. 1. Ex-gratia payments on termination of employment for
part-time personnel was first introduced in 1967. As part of
the 1973 "National Agreement for Part-Time Firemen"
discussions on the gratuity did take place which resulted in a
modest improvement, that is, instead of a maximum of 2 years'
allowance after 24 years' service it now stands at 2.50 years'
allowance after 30 years' service and over up to the age of
55. (Service after 55 years' is not reckonable). There was
also provision for a transitional period of 2 years' from 1st
January, 1986 whereby a maximum of 3 years' allowance for 36
years' service without the service over 55 being discounted
and the minimum service being reduced from 12 years' to 9
years'. The Unions' sought without success, to have this
arrangement continued pending the outcome of the present
claim. A radical improvement in the present scheme is long
overdue.
5. 2. Discussions have also taken place in relation to pensions
without success. It is the Unions' view that a pro-rata (to
full-time employees) arrangement of pension would be more
beneficial to the workers concerned than any gratuity. The
concept for pensions for part-time employees is not new and in
fact the E.E.C. are strongly in favour of treating part-time
workers no less favourably than full-time workers.
3. At present if a fireman enters the service at 20 and
retires at 55 after 35 years' service he would receive a
gratuity this year of #3,000. When comparisons are made with
the private sector on a very modest redundancy settlement - or
indeed the public service voluntary redundancy programme, it
will be seen that firemen continue to be treated badly in this
matter.
BOARD'S ARGUMENTS:
6. 1. The issue before the Court today is similar to that which
was the subject of a Court hearing almost four years ago
except that the Unions' claim has been raised substantially.
The revised gratuities introduced then contained:
(a) the maximum gratuity was increased from two to two
and a half times the inclusive annual allowance
i.e. an increase of 25%.
(b) during the transitional period of two years the
maximum enhanced ex-gratia payment was three times
the inclusive annual allowance.
Part-time firemen have benefited from the above improvements
and will continue to benefit from the increase from twice to
two and a half times the annual allowance as the maximum
gratuity payable. The Unions' claim is totally unrealistic in
view of the recent revision of gratuities by 25%.
2. The provisions of the retirement gratuities scheme are
very favourable when compared to the gratuities available to
other part-time workers in the local authority service. These
workers receive a maximum of one and a half times annual pay
after forty seven years' service. The Unions' have 'made
noises' in the past regarding the incorporation of part-time
workers into the superannuation code and yet do not appear to
have pursued this issue.
3. The majority of part-time firemen are also employed in
full-time jobs. According to the results of a survey recently
conducted by the Board approximately 20% of part-time firemen
are employed by local authorities and other public sector
bodies in their substantive posts and so are covered by the
superannuation code. In addition pension schemes in the
private sector are now the norm and therefore the vast
majority of part-time firemen enjoy the benefits of pension
cover on retirement from their substantive posts.
RECOMMENDATION:
7. Having considered the submissions made the Court recommends
that the maximum retirement gratuity be increased to three
times the inclusive annual allowance with proportionate
increase payable down the existing range of entitlements.
Signed on behalf of the Labour Court,
John O'Connell
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23rd February, 1989 Deputy Chairman
M.D./M.F.