FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : KRAUS AND NAIMER PRODUCTION LIMITED (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION TECHNICAL, ENGINEERING AND ELECTRICAL UNION DIVISION : Chairman: Mr Duffy Employer Member: Ms Doyle Worker Member: Ms Tanham |
1. Compensation for loss of defined benefit pension scheme.
BACKGROUND:
2. This dispute concerns a claim by the Unions for compensation for the loss of the Company's defined benefit pension scheme. This 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 9th September, 2011, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 6th November, 2013.
UNIONS' ARGUMENTS:
3 1 The defined benefit pension scheme was a term and condition of the Workers' employment.
2 The Company is seeking to disassociate itself from the pension scheme's deficit at no cost to itself.
3 The Company is part of a large multi-national group and can aford to pay the compensation sought by the Unions.
COMPANY'S ARGUMENTS:
4 1 The Company's existence is supported by Group funding.
2 The Company's priority is the retention of employment.
3. The Company is no longer in a position to fund the current defined benefit pension scheme.
RECOMMENDATION:
Having regard to all the circumstances of this case the Court is satisfied that the Unions’ claim is not unreasonable.
However, the Court is of the view rather than paying compensation to individuals available funding should be invested on their behalf in the newly established defined contribution scheme
The Court recommends that the company should provide an amount equal to €350 per year of service in respect of each individual member of the defined benefit scheme. The resulting amount should be invested in the defined contribution scheme on its inception.
Signed on behalf of the Labour Court
Kevin Duffy
13th November, 2013______________________
JMcCChairman
NOTE
Enquiries concerning this Recommendation should be addressed to Jonathan McCabe, Court Secretary.