LCR22594

SUBJECT:

1. Loss of Licence Arrangements. 2. Pilots Pension.

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 10 January 2022 in accordance with Section 26(1) of the Industrial Relations Act, 1990. A Labour Court hearing took place on 13 May 2022.


UNION’S ARGUMENTS:

3. 1. The Union is seeking an increase in Loss of License cover due to the nature of their members’ job and differences in Permeant Health Insurance among Workers.

2. The Union’s proposes and increase in the pension contribution and argue that the claim is is not excessive as the pension contributions made by the employer in other jurisdictions areas is greater than the amount paid in this jurisdiction the Employer operates outstrip this.

EMPLOYER'S ARGUMENTS:

1. The Employer has suffered financially due to the impact of the Covid Pandemic, rising costs, ongoing supply issues and increasing energy costs.

2. The Employer must continue to improve efficiencies and become more competitive. This is especially important in light of an upcoming tender process.

RECOMMENDATION:

The Court has given very careful consideration to the written and oral submissions of the parties. The matters before the Court - Pension contribution and arrangements to deal with Loss of Licence – were previously before the Court in 2019 when, because insufficient information was before the Court in relation to these matters, the Court recommended further engagement with the assistance of the Workplace Relations Commission (WRC) if necessary.

It is the understanding of the Court that the parties are, separately, engaged both locally and at the WRC in negotiations to address claims from the Trade Union for an increase in pension contribution and for an increase in the value of arrangements to deal with Loss of Licence.

Against that background the parties have requested the Court to investigate the within claim for increases in pension contribution rates and in the value of arrangements to deal with Loss of Licence. The Trade Union has clarified that it is seeking a recommendation from the Court for increases in these benefits for the period covered by a Collective Agreement which expired in April 2022 and that its fresh claims currently at the WRC are in respect of the period after April 2022. The Trade Union has asked the Court to regard these claims as different claims.

The Court is concerned at this piecemeal approach to collective bargaining. It is obvious that the Trade Union is claiming an increase in the value of pension contributions and of arrangements for Loss of Licence. The Trade Union seeks the application of increases at various times from 2019 to the period to be covered by any new collective agreement in the period after 2022. The Court cannot see how it can be expected to view the claims now before the Court, which are resisted by the employer, as fully separated from the claims currently before the WRC on the same subject matters, which are also understood to be resisted.

It is the Court’s view that the parties should accept that the Trade Union, in fact, has a claim to increase the value of pension contributions and of arrangements for loss of licence and that its claim includes claims for increases to apply both retrospectively and into the future. The overall purpose of engagement and negotiations therefore must be to seek agreement on the level of contribution to be made to pension and the value of arrangements to apply in the event of Loss of Licence and also to agree the date of application of any increases which might be agreed.

It is the Court’s view that the attempt to address the above claim across two fora, the WRC and the Court, at the same time is impractical and unrealistic. Any agreement on the overall claim can only flow from the parties’ engagement in a pragmatic manner on the true nature of the claims in a fashion which takes account of all relevant factors.

The Court’s concern at the manner of presentation of the trade dispute is exacerbated by the fact that, while it is asked to make a Recommendation on the merits of the dispute, it has not been made comprehensively aware of the detail or quantum of the claims currently being pursued by the Trade Union at the WRC for increases in pension contributions and Loss of Licence arrangement or the employer’s comprehensive response to those claims.

Similarly, the fact that the parties before the Court (a) have no shared understanding of the basis for calculating pension contributions and (b) differ to the extent of 100% in terms of their assessment of the value of the Trade Union’s claim for pension contribution increases which is before the Court, raises concerns as regards the effectiveness to date of engagement and negotiation on the Trade Union claim.

Having regard to all of the circumstances therefore, the Court recommends that the parties adopt a comprehensive approach to pension contribution and Loss of Licence issues with a view to securing agreement, if possible, to include the size of any increases to apply and the date of application of any such increases which might be agreed. Any such engagement or negotiation should occur in tandem with any other current engagement on matters which involve claims for increases in benefits or cost including, for example, pay.

In making this recommendation the Court has noted that the Trade Union seeks a review of the administration, operation and infrastructure of the pension scheme so as to ensure that the scheme is administered and operates in a manner which optimises the benefit accruing to the beneficiaries. The Court Recommends that the parties should review the administration and operation of the pension scheme so as to secure the optimal benefit to the beneficiaries and that any expertise required to advance the review should be available to the parties.

The Court so recommends.

	Signed on behalf of the Labour Court
	Kevin Foley
CN	______________________
23 May 2022	Chairman