FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : TOPAZ ENERGY LIMITED (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Ms Jenkinson Employer Member: Mr Murphy Worker Member: Mr Nash |
1. Appeal arising from LCR 18403 - pension scheme, pension credits and redundancy & staffing levels
BACKGROUND:
2. The dispute concerns a number of issues remaining from Labour Court Recommendation 18403 which dealt with the issues arising as a result sale of the shares in Irish Shell Limited to Topaz Energy Limited. A number of conciliation conferences took place under the auspices of the Labour Relations Commission. As the parties did not reach agreement, the dispute was referred to the Labour Court in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 24th March, 2006. The following is the Court's recommendation:-
RECOMMENDATION:
The Court has been requested by the parties to address the remaining issues, further to Labour Court Recommendation No: 18403. Having considered the views of the parties expressed in their oral and written submissions, the Court makes the following recommendation :-
Buy out of the Pension Element of Redundancy
The Court recommends that the Company’s offer of a compensation lump sum of €750,000 to be divided on the basis of service to all staff (regardless of Union membership) for the loss the pension element of the redundancy is fair and reasonable and should be accepted in full and final settlement of this claim.
Compensation for the Discontinuation of the Irish Shell Defined Benefit Scheme - “The Gap”
Considerable disagreement on both sides existed on the value of “The Gap” i.e. payment to compensate for the discontinuity due to the closure of the ISCPF (Irish Shell Contributory Superannuation Fund) to be paid into The Topaz Defined Contribution Scheme for those employees who opt to remain as deferred members of the ISCPF and the enhanced transfer value for those employees who opt to leave the ISCPF and have it paid into the Topaz Defined Contribution Scheme.
The Union sought two alternatives to address “The Gap”: -
•"ISCPF to provide a greater level of increase, or
•Topaz Energy Limited to provide an additional amount of pension in the new Defined Benefit Scheme"
Actuaries acting on behalf of Irish Shell produced figures on the value of “The Gap” for each individual employee, which Topaz Energy Limited offered to pay as compensation for the discontinuity.
However, this was not acceptable to the Union. Actuaries acting on its behalf produced alternative figures valued at a substantially higher level. Consequently, no agreement could be reached.
At the hearing, the Court requested the Union’s Actuaries and the Actuaries acting on behalf of Topaz Energy Limited to get together to agree on a fair and reasonable set of assumptions and compensation payments. While there was substantial agreement on many of the issues, it was not possible for them to produce one set of results.
The Court notes that substantial variation exists between the calculations produced by the various Actuaries involved.
The Court has given careful consideration to all aspects of this claim and makes the following recommendation in an effort to bring a resolution to the industrial relations dispute between the parties and recommends that the Company’s offer should be increased by a further 20%.
Proposed Topaz Defined Benefit Scheme
The Union expressed concern regarding three elements of the proposed new Topaz Defined Benefit Scheme which it claimed would adversely affect the members of the new scheme which the Company had promised would be no less favourable.
The Court notes that the Company indicated that there would be no change to one of those items relating to the “Change in Membership Rule”.
On the remaining two issues; “Change in Amendment Power” and “Change in Rule in relation to Member Contributions”, the Court recommends that the rules, which applied under the ISCPF, should continue to apply under the proposed new Topaz Defined Benefit Scheme, for a period of two years from the date of its introduction. At the end of two years the scheme should be reviewed in the light of conditions prevailing at that time.
This recommendation should put to ballot as a composite package in full and final settlement of all the issues referred to the Court.
The Court so recommends.
Signed on behalf of the Labour Court
Caroline Jenkinson
5th April, 2006______________________
CONDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.