FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : REGIONAL NEWSPAPERS & PRINTERS ASSOCIATION OF IRELAND (RNPAI) (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - UNITE / SIPTU DIVISION : Chairman: Mr Duffy Employer Member: Ms Doyle Worker Member: Mr Shanahan |
1. Cessation of funding by Employers to Defined Benefit Pension Scheme
BACKGROUND:
2. This case concerns a dispute between the Regional Newspapers and Printers Association of Ireland (RNPAI) and SIPTU and UNITE in relation to the winding up of the current Defined Benefit (DB) Pension Scheme. The Employers' position is that the Defined Benefit Scheme is no longer sustainable and is being replaced by a Defined Contribution (DC) Scheme. The employers' contend that they will continue to fund the DC scheme at the same levels as the DB scheme but cannot implement a national DC Scheme as some employer members are not prepared to provide a DC Scheme.
The dispute was not resolved at local level and was the subject of a number of conciliation conferences under the auspices of the Labour Relations Commission. As agreement was not reached the matter was referred to the Labour Court on 9th January, 2012 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 5th September, 2012.
UNIONS' ARGUMENT:
3 1 The Union cannot accept the proposed new DC Scheme as a replacement for the current nationally agreed DB Scheme. The Union is seeking that all employer members of the DB Scheme accept the new DC Scheme and that a common pension provider be used for the new scheme.
EMPLOYERS' ARGUMENT:
4 1 The current DB scheme is being replaced with a DC Scheme as a result of funding deficits and in accordance with the provisions of the scheme. The funding levels to the DC Scheme will remain at the same level going forward but a national scheme cannot be agreed as some current employer members of the DB scheme are unwilling to provide a DC Scheme into the future.
RECOMMENDATION:
The Court notes that the employers represented by the Association are prepared, in the context of DC Schemes to maintain the contribution rates, in cash terms, at the same level as applied hitherto in the case of the former DB Scheme. It is also noted that the employers are prepared to provide for Death in Service benefits under the DC Schemes.
The Court recommends that the employer's position, as illustrated in the handwritten note circulated at conciliation be accepted.
The acceptance of this position should be without prejudice to the Unions' desire to have a common scheme provider for each of these employments and the Unions should remain free to explore with the Association the feasibility of that objective.
Signed on behalf of the Labour Court
Kevin Duffy
28th September 2012______________________
AHChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Andrew Heavey, Court Secretary.