FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : MONDELEZ IRELAND LIMITED - AND - MIMA STAFF ASSOCIATION DIVISION : Chairman: Mr Hayes Employer Member: Ms Doyle Worker Member: Mr Shanahan |
1. Changes to private medical insurance (PMI).
BACKGROUND:
2. The Company proposed to change the terms of the PMI scheme in order to reduce costs which it claims have become financially unsustainable. The Staff Association which represents approximately two hundred members put forward an alternative scheme but this was rejected by the Company..
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 24th 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.
ASSOCIATION'S ARGUMENTS:
3. 1. Due to the age profile of the affected employees it means that the impact of the loss of PMI in their retirement package is a very real issue.
2. The reasonable expectations of the Managers have been denied by the actions of the Company.
COMPANY'S ARGUMENTS:
4. 1. Continuing to fund PMI for retirees and their spouses for the rest of their lives is unaffordable due to the change in the economic circumstances of the Company.
2. The parties have engaged fully on the issue and the facts are understood by the Staff Association.
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
19th December 2014______________________
JFDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to John Foley, Court Secretary.