Labour Court Database __________________________________________________________________________________ File Number: CD9095 Case Number: LCR12838 Section / Act: S67 Parties: LEO LABORATORIES LIMITED - and - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION |
Claim by the Union to have members trustees appointed to the pension scheme.
Recommendation:
5. The Court in principle has no objection to workers being
appointed to Pension Schemes as trustees.
Noting the provisions of the Pension Bill 1990 currently being
processed through the Oireachtas and the existing channels of
information between Union Officials/Shop Stewards/Management, the
Court recommends that the Union and Management seek a meeting with
I.P.T. to discuss the adequacy or otherwise of the information at
present available to employees, and decide whether this would be
improved by the appointment of a worker's trustee.
Division: Ms Owens Mr Keogh Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD9095 RECOMMENDATION NO. LCR12838
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: LEO LABORATORIES LIMITED
(REPRESENTED BY THE FEDERATION OF IRISH EMPLOYERS)
and
SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION
SUBJECT:
1. Claim by the Union to have members trustees appointed to the
pension scheme.
BACKGROUND:
2. The Company manufactures a wide range of pharmaceutical
products and is a wholly owned subsidiary of a Danish company. It
employs approximately three hundred and fifty workers and has been
operating in Ireland for over twenty years. Until 1988 the
Company operated a non-contributory pension scheme for its hourly
paid workers. In January, 1989 following detailed discussions
with the unions a significantly improved pension scheme was
introduced and the revised scheme included a contribution from
workers of 4% of pensionable salary. The scheme is administered
by Irish Pensions Trust who are the trustees. An actuarial
valuation is carried out every three years to ensure that the
scheme is adequately funded. The Union is claiming participation
in policy making relating to the pension scheme by having members
appointed to the board of trustees. The Company has rejected the
claim on the grounds that the scheme is being administered to the
highest standards and that proposed new legislation will further
protect workers rights. Local discussions and a conciliation
conference held on the 6th February, 1990 failed to resolve the
dispute which was referred to the Labour Court on the 12th
February, 1990. A Court hearing was held on the 25th April, 1990.
UNION'S ARGUMENTS:
3. 1. The Company pension will form an important part of the
income of the workers concerned on retirement. They are
entitled therefore to participate in the management of the
fund out of which their pensions will be paid. In recent
times there have been a number of cases of abuse of pension
funds which have resulted in many workers losing their
pensions. Whilst the Union is not suggesting any such
impropriety on the part of the Company concerned in this case,
the Union believes that it would be prudent to ensure that the
workers concerned have representatives on the Board of
trustees protecting their interests in the scheme.
2. The Union admits that Irish Pensions Trust which
administer the scheme has undoubted expertise in this field
and the Company argues that it is best to leave management of
the scheme to experts. Nevertheless Irish Pensions Trust
themselves have stated publicly that they agree with the
appointment of worker trustees to pension schemes and this was
stated in their first report on the scheme. Union
participation at trustee level is quite common in Irish
Industry, both in the public and private sectors and is
supported by all authoritative bodies that have spoken on the
issue. The Union's claim is therefore in line with
progressive thinking on this matter.
COMPANY'S ARGUMENTS:
4. 1. The scheme is fully funded and properly administered to
the full benefit of all scheme members. Each scheme member
receives an annual statement prepared by Irish Pensions Trust
Limited setting out his/her pension and death benefit
entitlement as at January, 1st each year. The Company
considers, the provision of and the protection of its
employees pension rights to be issues of critical importance.
The Company ensures at all times that the pension scheme fully
meets its requirements and is fully funded to meet all its
obligations.
2. In respect of the current claim the Company position is
that while existing arrangements fully protect its employees
interest: the provisions of the Pensions Bill 1990 will, once
enacted into legislation, be fully complied with by the
Company and more than adequately meet the Union's claim. The
Company is fully committed to protecting the best interest of
its workers in respect of their pension rights and will fully
comply with the new legislation. To make changes to its
existing scheme as required by the Union at this stage would
be to pre-empt the legislation and create additional and
unnecessary work as well as incurring extra costs.
RECOMMENDATION:
5. The Court in principle has no objection to workers being
appointed to Pension Schemes as trustees.
Noting the provisions of the Pension Bill 1990 currently being
processed through the Oireachtas and the existing channels of
information between Union Officials/Shop Stewards/Management, the
Court recommends that the Union and Management seek a meeting with
I.P.T. to discuss the adequacy or otherwise of the information at
present available to employees, and decide whether this would be
improved by the appointment of a worker's trustee.
~
Signed on behalf of the Labour Court
Evelyn Owens
____________________________
11th May, 1990. Deputy Chairman
T.O'D/J.C.