LCR20606

SUBJECT:
1. Bank of Ireland Pension Scheme


BACKGROUND:

2. This dispute concerns the Bank of Ireland 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 9^thSeptember 2013, in accordance with Section 26(1) of the Industrial Relations Act, 1990.

A Labour Court hearing took place on the 23^rdSeptember 2013.

RECOMMENDATION:

This dispute came before the Court following facilitated negotiations between the parties and conciliation at the LRC on the issues involved. It appears to the Court that the position reached in the facilitated process should have provided a basis for a continuation of negotiations and eventual agreement. However, that process was terminated and the parties moved to the LRC. Agreement could not be reached in conciliation and the matter was referred to the Court.

At the commencement of the hearing the Court sought to ascertain the reason for the breakdown in the earlier negotiations and what, if any, obstacle existed to a resumption of negotiations on outstanding issues.

The Union informed the Court that the reason for the breakdown in the facilitated process, and the impediment to further negotiations, was the stance taken by the Bank in seeking to alter a commitment on what is referred to as the ‘underpin’. This refers to a provision contained in a 2010 Agreement to the effect that the pensionable salary of members would not fall below 85% of what it would have been had the changes made by that agreement not have been made. The Union told the Court that if this issue was resolved it believed that constructive engagement could continue on all other issues.

Against that background the Court sought to identify a reasonable basis upon which the parties could resume their negotiations with a view to reaching agreement on the totality of the issues in dispute.

Having engaged with the parties in side session, and having taking account of their stated positions, the Court makes the following preliminary recommendations: -

• 
  1.The Court recommends that the Bank should accept that in any outcome of the overall dispute the underpin contained in the 2010 Agreement should be substantially maintained taking into account both Defined Benefit and Defined Contribution pension schemes.

  2.The parties should resume negotiations on the basis of the position tabled by the Union to the facilitator dated 28^thJune 2013 and in particular the stated position of the Union contained therein that the methodology proposed by the bank is acceptable.

  3.These negotiations should resume at the LRC immediately following the date of this recommendation. They should continue for a period not exceeding three weeks. If at the end of that process final agreement is not reached outstanding matters may be referred back to the Court for a definitive recommendation. Should such a reference back becomes necessary the Court will be prepared to formulate its final recommendation on the basis of written submissions on outstanding issues without the necessity of a further hearing.

Signed on behalf of the Labour Court



Kevin Duffy
CR______________________
23/09/2013Chairman



NOTE

Enquiries concerning this Recommendation should be addressed to Ciaran Roche, Court Secretary.