FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : ELECTRICITY SUPPLY BOARD. (REPRESENTED BY DEIRDRE CARTER-ROCHE, SOLICITOR, ESB) - AND - A WORKER (REPRESENTED BY RICHARD QUINN) DIVISION : Chairman: Mr McGee Employer Member: Mr Murphy Worker Member: Ms Ni Mhurchu |
1. Loss of 1% Salary and loss of same in Pension and Lump Sum on Retirement
BACKGROUND:
2. The matter concerns the loss of 1% of salary and subsequent similar loss in pension and retirement lump sum payable to the Claimant on retirement in December 2007. This loss arose from the refusal of the Claimant to opt for payment of salary by credit transfer instead preferring to continue to receive his salary in cash. At that time Management used the 1% salary increase as an inducement to improve the take-up of the credit transfer system on offer for salary payments under the Programme for Economic and Social Progress (P.E.S.P.) in December 1992.
On the 13th May 2008, the Claimant referred the issue to the Labour Court, in accordance with Section 20(1) of the Industrial Relations Act, 1969. A Labour Court hearing took place on the 1st October, 2008.
The Claimant agreed to be bound by the Court’s Recommendation.
CLAIMANT'S ARGUMENTS:
3. 1. There are extenuating circumstances beyond the Claimant's control which caused the claim to be delayed until after he retired, however the fact remains that the Claimant has suffered a loss in salary, retirement lump sum and pension payments.
2. Under natural justice the Irish Constitution guarantees the right to fair and just procedures. The Claimant deserves to have his case heard and investigated by the Labour Court otherwise the Claimant could be denied justice.
COMPANY'S ARGUMENTS:
4. 1. The meaning 'Trade Dispute' is contained in Section 3 of the Industrial Relations Act 1946 and the definition of 'Worker' is to be found in Section 23 of the Industrial Relations Act 1990. Neither definition is applicable in this dispute.
2.In the circumstances where the Claimant has retired and where his complaint to the Labour Court was lodged after he left his employment the Court has no jurisdiction to hear or investigate this case. The complaint should be dismissed on the grounds of absence of jurisdiction.
RECOMMENDATION:
This case, which concerns the Claimant’s pension entitlements, arising out of the non-payment of certain claimed salary increases while in the employment of the Electricity Supply Board (the ESB).
The Worker in question was attempting to process his case over a number of years. He retired in December 2007. On 23rd February 2008, he referred the matter to a Rights Commissioner for hearing under the Industrial Relations Acts but the ESB objected on 6th March 2008 to a hearing taking place.
On 11th May 2008, the Claimant referred the case to the Court under Section 20(1) of the Industrial Relations Act, 1969.
In the case of“Forfás and A Worker”(LCR16970), dated 8th November 2001, this Court found that a person who is retired from the workforce cannot be regarded as a worker and the Court has no jurisdiction to investigate a case brought by such a person unless the matter (a) is one which is ongoing during the currency of the individual’s employment; and (b) was referred to the Labour Relations Commission or the Labour Court prior to the individual’s retirement. The advice from which the Recommendation was derived came from an Opinion provided to the Court by the Attorney General.
The Court reached its decision in the Forfás case in the following terms:-
- “The Court adjourned the hearing to seek the Attorney General's advice as to whether it had jurisdiction to hear the claimant's case.
- The Court has now been advised that it is "entitled to investigate a matter which arose prior to an individual's retirement and which was referred to the Labour Relations Commission or Labour Courtpriorto the individual's retirement."
- In accepting this decision, the Court has a major concern that a large number of people will have no redress in situations of dispute between themselves and their previous employer, even in circumstances where commitments made are not subsequently honoured.
- The Court, therefore, strongly recommends that a mechanism be put in place to address situations as outlined above.”
This Court confirmed this finding again in the case of “University College Dublin and A Worker”(LCR 19310), dated 12th August, 2008, and further again in the case of“University College Dublin and A Worker” (LCR 19422), dated 11th December, 2008.In declining jurisdiction to issue a Recommendation in the instant case, the Court endorses the findings and views expressed in LCR 16970, LCR 19310 and LCR 19422.
Signed on behalf of the Labour Court
Raymond McGee
30th January, 2009______________________
JFDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to John Foley, Court Secretary.