FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : ADVISORY COUNCIL FOR ENGLISH LANGUAGE SCHOOLS LTD (ACEL) - AND - PSEU AHCPS DIVISION : Chairman: Mr McGee Employer Member: Mr Grier Worker Member: Mr Nash |
1. Superannuation
BACKGROUND:
2. The Company was originally established in 1967 and was reconstituted under the aegis of the Department of Education and Science in 1995. The Union's claim is for the provision of a superannuation scheme on the same basis as public servants. Since 2004 a defined contribution scheme has been in place but was introduced without the agreement of the Union. The Union argues that the Company is totally under the control of the Department of Education and Science. The Company maintain that the Memorandum for Government stipulated that a pension scheme would not be provided. The staff contracts also included this clause.
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 31st March, 2008 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 7th May, 2008.
UNION'S ARGUMENTS:
3. 1 There is a clear link between the pay of the staff concerned and the pay of equivalent graded staff in the Civil Service. The payment of benchmarking increases to them was conceded on that basis.
2 The Unions have sought to have the same superannuation scheme available to Civil Servants in the Department of Education and Science also available to the staff at the Company. This is a proper coordinated defined benefit scheme as that enjoyed by Departmental staff.
3 The Company have stated that the employer contribution to the existing defined contribution scheme was to be increased to 10%. This has not happened and staff were informed in the last month that the proposal was not yet approved.
COMPANY'S ARGUMENTS:
4. 1 When the Company was established, the Memorandum for Government stipulated that a pension scheme would not be provided. When PRSA's became obligatory the Company Board provided for the introduction of a scheme under which 5% employer's contribution was funded, with the balance being paid for by the employees
2 The Company has accepted that a larger employer share should be funded to provide the scale of benefit which would be akin to a coordinated public sector pension. These payments were agreed at the last Board meeting and will apply from the start of 2008.
3 It is proposed legislation to establish Education Ireland on a statutory footing. The arrangements will include provision for the making of a superannuation scheme, and the existing permanent full-time staff would be given the option of joining the scheme.
RECOMMENDATION:
Having considered the submissions made to it by the parties, the Court has come to the view that ACELS is in a unique position in that it is in the total effective control of the Department of Education and is therefore effectively an emanation of the State. The staff concerned are paid on Civil Service salary scales and benchmarking has been applied to them on both occasions, yet they have not had either the benefit or the value of public service pensions.
Given the unique nature of the employment and the small numbers involved, the Court recommends, on a strictly non-precedential basis, that the staff should have the benefit of a properly constituted and funded superannuation scheme, comparable to other public bodies, with payment of arrears to the scheme and which will apply also when the staff are transferred into Education Ireland, when this is set up.
Signed on behalf of the Labour Court
Raymond McGee
21st May, 2008______________________
DNDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to David P Noonan, Court Secretary.