FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 20(2), INDUSTRIAL RELATIONS ACT, 1969 PARTIES : HSE-EA - AND - IRISH MUNICIPAL, PUBLIC AND CIVIL TRADE UNION SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION DIVISION : Chairman: Mr McGee Employer Member: Mr Murphy Worker Member: Ms Ni Mhurchu |
1. Rehearing arising from LCR 19297 and LCR 19299.
BACKGROUND:
2. The case was the subject of two previous Labour Court recommendations - LCR19297 which involved SIPTU and LCR19299 involving IMPACT - which issued in July, 2008. It was also included in LCR18485 which issued in February, 2006. The issue relates to access to a pension scheme for Home Help Workers (SIPTU representing approximately 4,000 workers) and Home Help Organisers/Assistants (IMPACT representing 80 workers) in the voluntary sectors similar to that provided to Home Helps in the employment of the HSE. (The full background to the issue can be found in the recommendations mentioned above.) Following talks with management SIPTU modified its claim to an ex-gratia/gratuity scheme of eight weeks' pay per year of service but this was rejected by management. IMPACT was initially seeking a defined benefit (DB) scheme but was willing to explore the possibility of a defined contribution (DC) scheme on the basis of two criteria:
(A)An adequate level of funding to provide for the appropriate level of pension benefits, and
(B) A means of addressing past service
IMPACT's final proposal was as follows;
(1) Introduce an employer contribution of 20% of salary for a DC scheme commencing on the 1st January, 2009; and
(2) Treat any service arising prior to that date under the ex-gratia scheme formula using the final salary at retirement as the basis of calculation.
The HSE's case is that, due to the changed economic situation, it cannot afford the costs involved and is now seeking to suspend payments accruing until at least 2012.
A Labour Court hearing took place on the 19th February, 2009. The following is the Court's recommendation:
RECOMMENDATION:
Having considered the submissions put to it on this case, the Court is of the view that the best way to deal with the matter is by way of a Gratuity Scheme based on 4.5 weeks' pay per year of service.
The Scheme should take effect from the date of the Home Helps' Collective Agreement of August 2000 and should benefit both staff who have retired since that date and the families / estates of workers who have died since that date. It should be centrally administered and should have a minimum qualifying threshold and period of 8 hours per week over a period of 156 weeks respectively.
The Court so recommends.
Signed on behalf of the Labour Court
Raymond McGee
8th June, 2009______________________
CONDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Ciaran O'Neill, Court Secretary.