Labour Court Database __________________________________________________________________________________ File Number: CD90675 Case Number: LCR13158 Section / Act: S67 Parties: DRIMNAGH CREDIT UNION - and - IRISH DISTRIBUTIVE AND ADMINISTRATIVE TRADE UNION |
Claim by the Union on behalf of two clerical workers concerning a wage increase under the 29th Pay Round and the question of the level of contributions in respect of the pension scheme.
Recommendation:
5. Having considered the submissions and arguments of the
parties, the Court is satisfied that there is merit in the claims
made by both parties. Accordingly the Court recommends the
following pay increases and staff contributions to the pension
fund:-
Pay: 2.50% from 1st October, 1989
3.50% from 1st October, 1990 - 30th September, 1991
Pensions: 5% contribution phased
- 1% from 1st October, 1990
- an additional 1% from 1st October, 1991
- an additional 1.50% from 1st October, 1992
- and finally, an additional 1.50% from
1st October, 1993.
Division: CHAIRMAN Mr McHenry Mr Devine
Text of Document__________________________________________________________________
CD90675 RECOMMENDATION NO. LCR13158
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: DRIMNAGH CREDIT UNION
(Represented by the Federation of Irish Employers)
and
IRISH DISTRIBUTIVE AND ADMINISTRATIVE TRADE UNION
SUBJECT:
1. Claim by the Union on behalf of two clerical workers
concerning a wage increase under the 29th Pay Round and the
question of the level of contributions in respect of the pension
scheme.
BACKGROUND:
2. On 31st May, 1990, the parties met to discuss a Union claim
for a wage increase for two clerical staff employed by the Credit
Union. During the course of discussions the Credit Union proposed
the payment of phase 3 of the Programme for National Recvery
(P.N.R.) and raised the question of increasing the level of
employees' contributions to the pension scheme from a fixed
contribution of 12 pence per week to a contribution of 5% of
salary. The Union rejected the employer's proposal saying that it
would only discuss the pensions issue after the Pay Round has been
settled. On 13th July, 1990, the matter was referred to the
conciliation service of the Labour Court. At a conciliation
conference held on 24th September, 1990, the Credit Union proposed
a pay increase as follows:-
2.5% from 1st October, 1989
3.5% from 1st October, 1990 - 30th September, 1991.
and a phasing in of the increased pension contribution
as follows:-
1% from 1st October, 1989
2% " " " 1990
2% " " " 1991
The workers concerned rejected the proposal and on 5th November,
1990, the matter was referred to the Labour Court for
investigation and recommendation. The Court investigated the
dispute on 11th December, 1990.
UNION'S ARGUMENTS:
3. 1. The pension scheme was introduced in 1973. The workers
were never asked to pay more than a nominal sum of 12 pence
per week. During the course of pay negotiations over the
years the workers were constantly reminded of this 'perk'.
Now the Credit Union is trying to make an employee
contribution to the pension fund a condition of their paying
the Pay Round. It is unreasonable to expect the workers to
pay 5% in pension contributions in return for phase 3 of the
P.N.R.
2. The Union received no notice that the question of
pension contributions would be an issue during negotiations.
If the employer wishes to change a condition of employment or
serve a cost increasing claim on the Union, then they should
go through procedures. The Union believes that their
conditional offer is in breach of the P.N.R.
3. The Union would look favourably at the employer's wage
increase proposals if there were no strings attached. As
there are strings attached the Union reject the proposal and
seek an increase of 3.5%.
4. The workers concerned have indicated clearly that they
will not authorise increased deductions from their salaries in
respect of the pension scheme. They are exercising a right
which their employer appears to question and it is one they
intend to continuing to exercise.
CREDIT UNION'S ARGUMENTS:
4. 1. The pension scheme was originally intended to be a
contributory scheme and the employees contribution was set at
12 pence, (which was the relevant percentage of earnings at
the time). Over the years the contribution level was never
adjusted upwards and now there is a problem securing the
pension scheme for the future. In order to secure the future
of the scheme it is necessary to adjust the employees'
contribution to 5% of earnings. This percentage is
recommended by the League of Credit Unions and is also in line
with norms for contributory schemes.
2. The Credit Union believe that it is in the employees own
interest to make sure that their pension is protected.
3. The Credit Union have no objection to paying the 29th
Pay Round but have tried to approach both issues with a
package deal. The current financial situation is such that
cost cutting measures have to be taken right across the board.
If the Credit Union cannot improve its dividend and fall
behind the bank rate then they will lose investors. With this in
mind, the Credit Union are not in a position to pay any lump
sum compensation for a change in the contribution level. The
Court is requested to recommend that the Union accept the
employer's offer as outlined at the conciliation conference.
RECOMMENDATION:
5. Having considered the submissions and arguments of the
parties, the Court is satisfied that there is merit in the claims
made by both parties. Accordingly the Court recommends the
following pay increases and staff contributions to the pension
fund:-
Pay: 2.50% from 1st October, 1989
3.50% from 1st October, 1990 - 30th September, 1991
Pensions: 5% contribution phased
- 1% from 1st October, 1990
- an additional 1% from 1st October, 1991
- an additional 1.50% from 1st October, 1992
- and finally, an additional 1.50% from
1st October, 1993.
~
Signed on behalf of the Labour Court
Kevin Heffernan
16th January, 1991 ----------------
B O'N/U.S. Chairman