FULL RECOMMENDATION
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : DIAGEO (REPRESENTED BY JOE CULBERT) - AND - DIAGEO EMPLOYEES 600 APPROX (REPRESENTED BY SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION CONNECT GSU) DIVISION : Chairman: Mr Foley Employer Member: Ms Doyle Worker Member: Ms Treacy |
1. Pensionability Of Salary Increase
BACKGROUND:
2. This dispute could not be resolved at local level and was the subject of Conciliation Conferences under the auspices of the Workplace Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on 18 January 2019 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 28 January 2019.
UNION’S ARGUMENTS:
3. 1. The Unions are requesting that the pay increase as agreed be paid to all members represented by the three Unions.
2. The Unions are seeking that the pay increase be made Pensionable regardless of what Pension scheme the members are in.
3. The Company has not claimed inability to pay the salary increase or the pensionability of the increase.
EMPLOYER'S ARGUMENTS:
4. 1. The Employer is offering a pay increase of 2.5% from 1 October 2018 for those members of the defined contribution scheme.
2. The Employer wants the increase of 2.5% for members of the Guinness Ireland
Group Pension Scheme ( GIGPS) either suspended pending progress on the pension reform process or that the increase be applied for these employees on a non-pensionable basis but with the understanding that the pensionability of this particular increase can be addressed as part of meaningful and substantive reform of the pension scheme.
3. The Employer is offering a 2.5% increase to the non-pensionable elements only of WPA 1 & 2 effective from 1 October 2018.
RECOMMENDATION:
The Court has given very careful consideration to the written and oral submissions of the parties.
The Court understands that the parties’ consideration of the within dispute is having an effect on the efforts of the parties to achieve implementation of an earlier Recommendation of the Court – LCR21828.
That earlier recommendation set out mechanisms for engagement over a four-month period with provision for a referral to the Court for a definitive recommendation on the matters at issue at the end of that period of facilitated engagement.
The Court recommends that the agreed salary increase of 2.5% should be pensionable. It should be applied as a pensionable increase to members of the Defined Contribution Pension scheme with effect from 1stOctober 2018. That increase should also be applied to the non-pensionable element of Work Pattern Allowance (WPA) 1 and 2 with effect from 1stOctober 2018.
The increase should be applied as a non-pensionable increase to members of the Guinness Ireland Group Pension Scheme with effect from 1stOctober 2018. In addition, a non-pensionable amount equivalent to a 2.5% increase to the WPA 1 and 2 should be applied with effect from 1stOctober 2018.
The non-pensionable 2.5% increase to pay and to WPA 1 and 2 should become pensionable with full retrospective effect upon completion of the engagement recommended in LCR21828. In the event that any person leaves the employment prior to such conclusion the application of pensionability for that person should take place on the date of departure from the employment.
The Court so recommends
Signed on behalf of the Labour Court
Kevin Foley
MK______________________
4 February 2019Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Mary Kehoe, Court Secretary.