Act

Complaint/Dispute Reference No.

Date of Receipt

Complaint seeking adjudication by the Workplace Relations Commission under section 13 of the Industrial Relations Act, 1969

CA-00023788-001

05/12/2018

The complaint is that a retired Level Cross Keeper was not paid a retirement gratuity. He had been employed from 14th June 2001 to 11th January 2018.

The retirement gratuity had been paid to employees when they retire. The agreement between the company and the union was unilaterally removed without discussion. The value of the gratuity is equivalent to one week’s pay per completed year of continuous service. In this case 17 X €640.30 = €10,885.10. This removal was punitive and unfair. The superannuation scheme is for regular waged staff and it excludes Level Crossing Keepers from entry to the scheme. Entry was confined to appointed members between the ages of 20 and 51 years. Staff members excluding Cross Keepers who are not members of the superannuation scheme are eligible on retirement to receive a certain ex gratia payment under company funded scheme. No contribution is required. It is the claimant’s view that the company does not dispute that these arrangements were in place and they have now been reinstated by the new Chief Executive.

It is their position that this arrangement was unilaterally removed without consultation and agreement. He had a genuine expectation that he would receive the lump sum on retirement. He is seeking the payment with immediate effect.

This claimed gratuity was traditionally paid to employees who were precluded on age grounds from joining the pensions scheme. The scheme precludes entry over 51 years of age. He could not enter the scheme. This gratuity has been paid to a limited number of employees e.g. Cross Keepers. They are entitled to work to age 70. The reason that so many of this category are not in the scheme is because they joined after the age of 50. The payment was capped at €9,525 per employee. This payment was made in the years 2005 to 2016 to Level Cross Keepers. However, in April 2017 a decision was taken to discontinue this payment. This was done to reduce costs in very difficult financial circumstances. There have been several representations made on this matter, but it was not resolved. The payment has now been reinstated for those Level Crossing Keepers that retire from March 2019 onwards.

I note that this payment is understood by all parties as being voluntary in nature.

I note that it is accepted that there are only four staff who have not received this payment since 2008.

I note that this payment was withdrawn due to the financial position of the company.

I note that the Cost Containment Programmes were negotiated in 2012 and 2014 respectively and that this payment was withdrawn in April 2017.

I note that the Company has advised that the payment was reinstated in June 2018 on a go forward basis.

In all the circumstances I recommend that this ex gratia payment, capped at €9,525 should be paid to the claimant.

In doing so I recommend that this granting of this specific claim will not be viewed as having established a precedent for similar claims in any other grades.

I recommend that this payment is made within six weeks of the date below.

Retirement gratuity