FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 2004 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : GLANBIA PUBLIC LIMITED COMPANY (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - DAIRY EXECUTIVES' ASSOCIATION DIVISION : Chairman: Mr Duffy Employer Member: Mr Murphy Worker Member: Mr O'Neill |
1. Dispute concerning funding of Pension Scheme.
BACKGROUND:
2. The Glanbia Pension Scheme is an amalgam of a variety of different Schemes put in place over decades in the previous Avonmore and Waterford Foods Co-ops. There are in total 1,394 members of which 284 are members of the Dairy Executives' Association (DEA). In common with other Defined Benefit Schemes it has experienced funding difficulties and on two occasions in 2003 and 2006 the Company has sought agreement on the means of addressing those difficulties. On the advice of an independent actuarial assessment the DEA has decided not to increase their contribution at this time by more than 2.4% flat and this is in conflict with the views of other Unions within the Group that consider the Company's proposals as reasonable in light of the circumstances.
The dispute could not be resolved at local level and 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 28th September, 2007, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 14th December, 2007.
UNION'S ARGUMENTS:
3. 1. Before committing to future contributions it is prudent to wait two years until after the next actuarial assessment as only then will the information be available regarding remaining numbers in the Scheme as a result of plant closures and early retirements.
2. The DEA is not aware of any other body which is prepared to increase its contribution by 5.9% in addition to the percentages agreed when the Schemes were set up as they would not receive any extra benefit.
COMPANY'S ARGUMENTS:
4. 1. The Company has committed huge resources and engaged in intensive negotiations with all Employees and Unions in order to ensure equity between different groups of Workers. In order to achieve this a template governing all possible future possibilities and how they should be dealt with should they arise has been set down. Only the DEA objects to this proposal.
2. Up to 80% of members have signed up to the Company's proposals but the other Unions who have accepted the deal have indicated that any provision entered into with the DEA which is more favourable will cause them to reopen discussions with the Company.
RECOMMENDATION:
The Company's proposals have been put forward as a composite package which are intended to preserve existing benefits and provide a solution to current and projected funding difficulties of the Pension Scheme.
The Court is satisfied that the proposals as they stand are fair and reasonable in all the circumstances. The Court further accepts that the proposals must be viewed as a package and that different funding arrangements cannot be put in place in respect of the group associated with this claim as against all other groups.
Accordingly, the Court recommends that the Company's offer be accepted.
Signed on behalf of the Labour Court
Kevin Duffy
7th January, 2008.______________________
JF.Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to John Foley, Court Secretary.