FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2001 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : DAIRYGOLD (GALTEE FOODS) - AND - AMALGAMATED ENGINEERING AND ELECTRICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Mr Grier Worker Member: Mr O'Neill |
1. Pension
BACKGROUND:
2. Galtee Meats (Mitchelstown) Limited is a wholly owned subsidiary of Dairygold Co-Operative Society Limited employing c. 460 people in Mitchelstown, Cork. Improvements were made to the Company's Pension Scheme as the result of a Labour Court Recommendation LCR 16190, issued on the 10th June 1999. In March 2000, the Union on behalf of its 14 Craft Workers employed by Dairygold Foods submitted a claim for improvements in their pension scheme.
The matter was the subject of a conciliation conference under the auspices of the Labour Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on the 5th December, 2002, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 23rd April 2003, the earliest date suitable to both parties.
UNION'S ARGUMENTS:
3.1 The existing pension scheme was established in 1967. It applied to full-time permanent employees covering various grades including craft workers. In 2000 local level discussions took place between the Company and Unions. The Company accepted that the present scheme is inadequate. Following the 2000 discussions a separate scheme was negotiated between the Company and SIPTU on behalf of it's operatives . The Company offered craft workers a variant of this scheme. This offer is unacceptable to our members.
2 The Company are still unwilling to put funds into a scheme which would make for decent retirements benefits for our members. The present scheme has cost the Company little or nothing in recent years despite the limited costs involved, even with the radical improvements over the coming years. The craft workers are not interested is minor improvements which would give them the equivalent of €100 or less per week in almost 20 years time. The scheme requires a radical overall.
3. The Company is in a strong trading and financial position is well able to afford the improvements that the Union propose.
COMPANY'S ARGUMENTS:
4.1 In March 2000 the Union of behalf of its members(Craft Group) submitted a claim for improvements in their pension scheme. They are members of the Mitchelstown Co-Operative Agricultural Society Pension Scheme for employees in the Bacon Industry (1979). In 2000 further improvements were negotiated in the scheme as a result of a Labour Court Recommendation LCR16190. Following discussions between SIPTU and the Irish Cooperative Organisation Society (ICOS) an agreement was reached, recommended and accepted following a national ballot. ICOS, following the Union's claim, offered these employees the opportunity to join this improved scheme at a contribution rate of 5%. This offer was rejected.
2. The Society encouraged the Craft Group to join the enhanced ICOS scheme as it afforded them far greater benefits than those accruing under the scheme they were currently members of . Pensions throughout the Society for general operatives /lab/ clerical and craft workers are calculated on basic pay plus 25% even though many operate on annual hours type agreements, or are paid shift, overtime etc. This pension agreement reached in 2000 (basic x 1.25) set the maximum at 25% of basic pay due totally to the cost implications for all the Societies involved.
3. The Company's offer to the Craft Group is fair and reasonable given the improvements that were negotiated and accepted following the issue of Labour Court Recommendation LCR 16190.
RECOMMENDATION:
Having carefully considered the submissions of the parties the Court believes that the final offer made by the Company represents substantial improvement in the current pension arrangements of the claimants and is in line with those applicable to other comparable employees.
In the circumstances the Court recommends that the Company's offer be accepted.
Signed on behalf of the Labour Court
Kevin Duffy
7th May, 2003______________________
JB/Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Jackie Byrne, Court Secretary.