Labour Court Database __________________________________________________________________________________ File Number: CD90147 Case Number: LCR12800 Section / Act: S67 Parties: CORAS IOMPAIR EIREANN - and - C.I.E. TRADE UNION GROUP |
Claim by the Unions for an extension of the existing Wage Grade Pension Scheme formula on an open-ended basis.
Recommendation:
7. The Court having considered the submissions of both parties
must express its concern that greater progress has not been
achieved in reaching agreement on the introduction of a revised
Pension Scheme as recommended in 1986.
The Court again exhorts the parties to seek a resolution to the
issue as a matter of urgency.
In respect of the issue raised regarding the "interim pension
scheme" the Court recommends that the level of the existing
formula be adjusted to such an extent as will ensure that Pension
rates applicable are at a minimum of 2/3 and are maintained up to
that level.
Division: Ms Owens Mr Keogh Mr O'Murchu
Text of Document__________________________________________________________________
CD90147 RECOMMENDATION NO. LCR12800
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: CORAS IOMPAIR EIREANN
AND
C.I.E. TRADE UNION GROUP
SUBJECT:
1. Claim by the Unions for an extension of the existing Wage
Grade Pension Scheme formula on an open-ended basis.
BACKGROUND:
2. The Pension Scheme which is in operation within C.I.E. at
present is based on the employee's basic weekly wage at the date
of retirement and is not a service related scheme. The pensions
and contributions are related to wage bands. The Scheme, which
was set up in 1963 following a report by a Commission on C.I.E.
pensions, was intended as an interim scheme pending the
introduction of an alternative scheme which would provide a
pension at normal retirement age after 40 years' service, which
together with social welfare benefits would amount to two thirds
of basic weekly wage at date of retirement.
3. Since the introduction of the Scheme in 1963 the gradations
have been increased to take account of wage movements. The latest
increase came into effect from 1st October, 1987 following an
investigation by the Labour Court which in LCR10854 recommended
inter alia, that the maximum point be increased from #170 to #180.
4. The Group lodged a claim for an extension of the existing wage
grade pension scheme formula on an open-ended basis so that there
would be automatic index linking between wages and pensions on the
basis that some grades within C.I.E. were retiring on basic wage
rates higher than the formula maximum. C.I.E. rejected the claim.
The claim was then referred to the conciliation service of the
Labour Court on 3rd May, 1989. A conciliation conference was held
on 30th June, 1989. As no agreement was reached the parties
subsequently requested an investigation and recommendation by the
Labour Court. A Court hearing was held on 28th March, 1990.
GROUP'S ARGUMENTS:
5. Since LCR10854 was issued the wage rates applicable within the
Company are such that the present table of gradations is
seriously out of line. Craftsmen at #212 per week exceed the
top point of the table by over #30 a week. They are followed
by O.P.O. bus drivers, locomotive drivers and CTC
signalpersons who are above the point while the operative
grades are rapidly approaching the top point. It is,
therefore, quite clearly more sensible to rectify the position
now and spread the cost rather than doing so in one large lump
sum.
2. In October, 1988 the Group wrote to the Company seeking a
meeting to discuss "automatic index linking" and "a public
sector type scheme" because the Unions were concerned over the
gradations getting out of line and the lack of progress on the
public sector type scheme. The Company in its reply of 18th
April, 1989 declined the claim for index linking and informed
the Group that it was in the process of drafting proposals for
a public sector type scheme. The Group understands that these
proposals have recently been forwarded to the relevant
Department without any consultation with the Unions as
provided under Ministerial Order (details supplied to the
Court).
3. In seeking to have the present gradations index-linked,
the Group is aware that it maybe some considerable time before
a public sector type scheme is implemented because of (a) the
cautious nature of Government Departments, (b) the current
preoccupation with fiscal rectitude, (c) the lack of Trade
Union input into the proposals and (d) many members in the
present scheme may not opt to transfer because of the cost
factor.
COMPANY'S ARGUMENTS:
6. 1. The present levels of pensions are fair and reasonable.
They are subject to annual review and by and large conform to
the criteria established by the 1963 Commission on CIE
Pensions. In these circumstances it would be entirely
inappropriate that the present very large pension cash costs
borne by CIE which currently are #4.6m per annum and which
represent for the CIE Board an actuarial liability of some
#73.5m should be added to, particularly when there are no
funds available to meet such costs. Failure to recognise the
competitive and financial realities facing the CIE Group of
Companies places the ongoing viability and employment
prospects seriously at risk.
2. The claim is in essence the same as the claim declined by
the Court in its Recommendation No. 10,854 of 12th December,
1986. There has been no change in circumstances since then to
warrant concession of the present claim.