FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : FÁS - AND - ASSOCIATION OF HIGHER CIVIL AND PUBLIC SERVANTS PUBLIC SERVICE EXECUTIVE UNION CIVIL AND PUBLIC SERVICE UNION DIVISION : Chairman: Mr Flood Employer Member: Mr Pierce Worker Member: Mr O'Neill |
1. Pay and pension arrangements.
BACKGROUND:
2. In 1988, the National Manpower Services (NMS) was amalgamated with ANCO and the Youth Employment Agency (YEA) to form FÁS. Most of the Civil Servants in the NMS were seconded to FAS. Some became designated FÁS staff, severing their ties with the Civil Service. The Unions' case is that the workers concerned are the only category of staff in FÁS who are not eligible to join the FÁS contributory pension scheme. Instead, they are members of a non-contributory pension scheme and their salary is 5% lower than workers in the contributory pension scheme to reflect this. The Unions are seeking that the workers concerned should be allowed to join the contributory pension scheme, and that their salaries should be increased by 5% to offset the cost. Management does not accept that the staff concerned are treated unfairly.
The dispute was referred to the Labour Relations Commission and a conciliation conference took place. As the parties did not reach agreement, the dispute was referred to the Labour Court on the 9th of December, 2002, in accordance with Section 26 (1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 19th of November, 2002.
UNIONS' ARGUMENTS:
3. 1.Whilst staff in the non-contributory pension scheme receive the same net pay as those in the contributory scheme after their superannuation contribution is paid, there is a significant impact in terms of their subsequent pension benefits.
2. Staff who became designated FÁS staff were given a clear indication in their letters of assignment that they would be put into a contributory superannuation scheme when FAS put the arrangements in place (details supplied to the Court).
MANAGEMENT'S ARGUMENTS:
4. 1. FÁS has referred this claim to the Department of Finance and the Department of Enterprise, Trade and Employment for guidance, and has been assured that the pension arrangements for designated Civil Servants fully conform with Government policy and practice throughout the public service, recently endorsed by the Final Report of the Commission on Public Service Pensions.
2. If the claim is conceded it could result in claims from the wider public service who have not received uplifted scales, with major cost implications.
RECOMMENDATION:
The Unions' case is that the staff involved in this claim receive less favourable pension benefits in terms of pension and lump sums than their colleagues in the contributory scheme. The staff seconded to FAS are obliged to terminate their secondment from the Civil Service and designate to FAS when they are promoted. Other staff who were immediately designated as FAS employees were excluded unfairly from the FAS contributory scheme.
Management's case is that the pension arrangements for this group of staff are as provided for in the Labour Services Act, 1987. They further argued that the claim runs contrary to the report of the Commission on Public Service Pensions, the conclusion of which does not support the changing of pension arrangements for public servants in non-contributory schemes.
The Court, while noting the Unions' argument that it is incongruous that this group of Civil Servants are treated differently to everybody else in FAS, is conscious of many organisations where employees within the same groupings have different pension arrangements. In many such situations, non-contributory schemes have been replaced with contributory schemes, usually for new employees.
The Court notes that the Commission on Public Service Pensions, having considered the issue of differing pension contribution arrangements, took a decision not to recommend the introduction of explicit pension contributions and consequent uplifting of salary for the groups affected. This decision was taken in the context of the wider Public Service.
The Court, given the wider implications of this claim, recommends that a specific case for this group be put for consideration to the working party established, following the Commission on Public Service Pensions Report.
Signed on behalf of the Labour Court
Finbarr Flood
9th December, 2002______________________
CON/MB.Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.