FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : MONDELEZ IRELAND LTD - AND - UNITE DIVISION : Chairman: Mr Hayes Employer Member: Ms Doyle Worker Member: Mr Shanahan |
1. Capping of health insurance allowance.
BACKGROUND:
2. Due to the escalating cost of Private Health Insurance the Company has decided to cap the medical allowance at the current rate as part of its increasing cost containment measures. The Union rejects the proposal on the grounds that it is not covered by the Harmonisation Agreement.
The 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 7th October, 2014, in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on the 4th December, 2014.
UNION'S ARGUMENTS:
3. 1. The Company's plan to cherry pick parts of the Harmonisation Agreement that they now find objectionable will render the Agreement unworkable.
2. The Company's plan to cap the medical allowance is not warranted due to the relatively small number of employees affected.
COMPANY'S ARGUMENTS:
4. 1. The rise in medical cost inflation in recent years make the scheme unsustainable on its present basis. Introducing a cap at its current value is a reasonable response.
2. The concept of a 'buy out' is not justified or affordable in the current economic circumstances.
RECOMMENDATION:
The Court notes that the all staff employed in the Company benefit in one form or another from the payment of PMI whilst at work and or in retirement. The Court further notes that the instant case affects a minority of the staff.
Without commenting on the merits of the respective positions of either side the Court recommends that changes to the scheme proposed by either side be processed simultaneously for all groups affected rather than on a piecemeal basis as at present.
The Court so recommends.
Signed on behalf of the Labour Court
Brendan Hayes
30th December, 2014______________________
JFDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to John Foley, Court Secretary.