FULL RECOMMENDATION
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : DUBLIN BUS - AND - 2700 BUS COMPANY WORKERS (REPRESENTED BY SIPTU) (NBRU) (CONNECT) (UNITE) (TSSA) DIVISION : Chairman: Mr Hayes Employer Member: Mr Marie Worker Member: Ms Treacy |
1. Consolidation of Shift Pay for Pension Purposes.
BACKGROUND:
2. This dispute could not be resolved at local level and was the subject of a Conciliation Conference under the auspices of the Workplace Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on 16 March 2018 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 22 June 2018.
UNION’S ARGUMENTS:
3. 1. Irish Rail & Bus Eireann employees within the C.I.E Regular Wage Grade Scheme currently have shift pay reckonable for pension purposes.
2. At no point in the discussions around the resolution of the 2016 pay claim did Dublin Bus argue that pension/shift pay consolidation must be offset by productivity or efficiencies.
3. Dublin Bus returned to profitability in late 2014 and continues to be profitable since that date. The RWS pension scheme has the capacity to absorb this modest increase to the retirement benefits of frontline transport workers.
EMPLOYER'S ARGUMENTS:
4. 1. Dublin Bus acknowledge the precedent in the C.I.E wages grade scheme for the consolidation of shift pay for pension purposes with Irish Rail drivers and subsequently with Bus Eireann employees in 2017.
2. However in the case of Irish Rail the cost of funding consolidated pay was achieved through a productivity agreement. In the case of Bus Eireann the consolidation of pay was part of an overall restructuring and productivity agreement brokered to enable the company to survive.
3. The annual cost of funding the consolidation of shift pay for pension purposes for members of the Wages Grade Pension Scheme should be achieved through identifiable productivity savings from the relevant grades.
RECOMMENDATION:
The Court has given careful consideration to the extensive written and oral submissions of all parties in this dispute.
On the basis of those submissions the Court recommends as follows: -
1. That, for all future service, shift pay be consolidated for pension purposes with effect from 1 January 2019.2. That the parties, in the context of the wider CIE Group discussions, engage on the manner in which shift pay will be consolidated for pension purposes and how the additional costs of consolidation are to be financed by the Company, in respect of past and future service with the Company.
3. In the event that those discussions are not concluded before 1 June 2019, terms on which shift pay should be consolidated should be referred back to the Court for a final definitive Recommendation.
4. The outcome of that process should be retrospectively applied to the lump sums and pension in payment to all Dublin Bus workers that retire under the terms of the scheme on or after 1 January 2019.
The Court so recommends.
Signed on behalf of the Labour Court
Brendan Hayes
2 July 2018______________________
MNDeputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Michael Neville, Court Secretary.