Labour Court Database __________________________________________________________________________________ File Number: CD94317 Case Number: LCR14588 Section / Act: S20(1) Parties: TELECOM EIREANN - and - THREE WORKERS;MR J COLLINS;MR P DIXON |
Dispute concerning the inclusion of Public Holiday allowances for superannuation purposes.
Recommendation:
The Court, having considered all of the views expressed by the
parties in the submissions made and in subsequent correspondence,
does not find grounds for concession of the claim.
Division: MrMcGrath Mr Brennan Ms Ni Mhurchu
Text of Document__________________________________________________________________
CD94317 RECOMMENDATION NO. LCR14588
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990
SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969
PARTIES:
TELECOM EIREANN
AND
THREE WORKERS
SUBJECT:
1. Dispute concerning the inclusion of Public Holiday allowances
for superannuation purposes.
BACKGROUND:
2. The dispute concerns three workers who were employed by the
Company as night telephone supervisors. In March, 1994 the
workers concerned wrote to the Company inquiring if certain
earnings including holiday earnings were reckonable for
superannuation purposes as they intended to avail themselves
of an early retirement scheme introduced by the Company in
April, 1994. The Company replied by letter dated 15th April,
1994 and stated that Public Holiday earnings were deemed to
be overtime and as such were not reckonable for
superannuation purposes. The Company maintained this
position in further correspondence between the parties.
Subsequently the workers referred the dispute to the Labour
Court under Section 20(1) of the Industrial Relations Act,
1969 and agreed to be bound by the Court's recommendation.
The Company did not attend the hearing as it maintained that
matters of general principle concerning superannuation are
proper for discussion between Company and Unions under the
aegis of the Joint Conciliation Council of the transitional
scheme of Conciliation and Arbitration for the Irish
Telecommunications Board. The Company provided a written
submission to the Court. The Court investigated the dispute
on the 13th July, 1994.
WORKERS' ARGUMENTS:
3. 1. The Company confirmed to the workers concerned that
while Bank Holiday earnings did not qualify for
superannuation purposes, Sunday schedule duties are
reckonable. The workers contend that Bank Holiday
duties are not overtime because all such attendances are
rostered/listed. They are compulsory, not voluntary.
Bank Holiday attendances are scheduled the same as
Sunday attendances which are reckonable for
superannuation purposes.
2. Day Supervisors and Telephonists have a six-day
liability attendance. All of their Sunday attendances
are "sixth" days (overtime). Because this extra
attendance is operated on a listed/rostered basis it is
not deemed overtime and consequently is reckonable for
superannuation purposes. Postal sorters in An Post have
a similar arrangement. This establishes the argument of
the workers concerned that such payments are and should
be deemed 'allowances' and reckonable for superannuation
purposes.
3. In many other areas of the Public Service, workers
rostered over 7 day 24 hour duties have Bank Holiday
earnings reckoned for superannuation purposes. In a
number of these employments such earnings are
reckonable, whether attendances are rostered or
non-rostered.
4. In view of the system used by the Company in the
calculation of allowances for superannuation purposes,
whereby the allowances earned over the preceding three
years are divided by three, the claimants request the
Court to recommend three years' retrospection.
COMPANY'S ARGUMENTS:
4. 1. Public Holiday attendances are paid on an overtime basis
(double time). Overtime is not a reckonable pension
emolument under the terms of the main Telecom Eireann
Superannuation Scheme (details supplied to the Court).
The Company is prohibited under the terms of the scheme
from treating overtime as reckonable for superannuation
purposes. These arrangements are in operation
throughout the Civil Service.
2. With regard to Day Supervisors and Telephonists their
attendance liability is 5 over 6 days with extra
attendance on Sundays. While recompensed on an overtime
basis it is reckonable for superannuation purposes in
accordance with Department of Finance Superannuation
Authority no. 4 of 1968 which provided that 'Sunday
Duty' provided by certain specified grades would reckon
in the calculation of pension lump sum and gratuities
subject to certain conditions (details supplied to the
Court).
3. In 1993 the Unions and the Company reached agreement on
a methodology for reckoning Sunday earnings for
superannuation purposes. In so far as overtime is
concerned, the only earnings reckonable are those which
accord with the terms of the Department of Finance
Authority no. 4. The arrangements agreed with the
Unions apply solely to scheduled Sunday earnings. Other
overtime earnings including Sunday overtime duties
performed outside the terms of the Agreement are not
reckonable for superannuation purposes.
4. Any concession of the claim would have serious
implications relating to the payment of pensions in the
Company and throughout the Public Service.
RECOMMENDATION:
The Court, having considered all of the views expressed by the
parties in the submissions made and in subsequent correspondence,
does not find grounds for concession of the claim.
~
Signed on behalf of the Labour Court
28th October, 1994 Tom McGrath
T.O'D./D.T. _______________
Deputy Chairman
Note
Enquiries concerning this Recommendation should be addressed to
Mr. Tom O'Dea, Court Secretary.