FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : IRISH SUGAR/ERIN FOODS - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Owens Employer Member: Mr Pierce Worker Member: Ms Ni Mhurchu |
1. Pension scheme for seasonal workers.
BACKGROUND:
2. The Union is seeking the introduction of a defined benefit pension scheme for seasonal workers providing benefits pro-rata with those that apply, under the Company's existing scheme, to full-time manual workers and back-funded to the date of original commencement. The Company is prepared to discuss only a defined contribution scheme and is not willing to pay for any back-funding, the cost of which, it claims, would be prohibitive. The matter was the subject of a conciliation conference, under the auspices of the Labour Relations Commission, at which agreement was not reached. The dispute was referred to the Labour Court, on the 7th of January, 1998, in accordance with Section 26(1) of the Industrial Relations Act, 1990. The Court carried out its investigation, in Dublin, on the 2nd of March, 1998.
UNION'S ARGUMENTS:
3. 1. The employment of seasonal personnel has always been a feature of staffing requirements of the Company due to the concentrated period of activity relating to the "beet campaign". This has led to the current position where part-time employment contracts within the Company stands at around 270, almost equal to the number of full-time general operatives. In the light of the move, in recent years, away from the traditional type of job (full-time permanent) to atypical forms of work, legislative protection for atypical workers has been developed to provide for the pro-rata extension of benefits to workers with contracts of a non full-time/permanent nature.
Those trends should be taken account of and the equity principle should be applied on a pro-rata basis in terms of benefits, crediting of back service and levels of contributions.
2. The Union is flexible in its approach and is willing to consider methods of making the appropriate benefits available to the part-time staff in forms which may differ from the standard pension scheme and not require a direct participation by those staff in the existing scheme.
COMPANY'S ARGUMENTS:
4. 1. The Manual Workers' Pension Scheme was set up by agreement with the Unions in 1984 to cater for permanent full-time employees of the company. It was not intended that any other category of employee was to be included then or in the future. The funding of the scheme was and is based on this assumption.
2. The cost of conceding the Union's claim by the inclusion of campaign and other atypical employees would be prohibitive (details supplied to the Court).
3. Given the uncertainty regarding the continuity and the level of income for the relevant categories of employees, a defined benefit scheme is inappropriate. An increasing proportion of new schemes in industry are actually defined contribution schemes.
4. The categories of employees referred to in the claim are not included in over 90% of permanent arrangements in industry nor is there any current or pending legislation proposing that they be included.
RECOMMENDATION:
Having considered the submissions and arguments presented, the Court recommends as follows:-
(1) A payment-on-retirement system for Seasonal Workers be introduced.
(2) Back-dating to 1995 (the date the claim was lodged).
(3) The parties meet immediately to negotiate a scheme which will include
(a) a pension on retirement based on defined contributions
or
(b) a lump sum payment on date of retirement
or
(c) a combination of (a) and (b) above.
Following the conclusion of the negotiations the outcome will be put to the claimants for the purpose of exercising their option on the scheme.
Signed on behalf of the Labour Court
Evelyn Owens
27th of March, 1998______________________
M.K./S.G.Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Michael Keegan, Court Secretary.