LCR23079

PARTIES:

DIVISION:

SUBJECT:

Section 20(1) Industrial Relations Act 1969.

BACKGROUND:

The Worker referred this case to the Labour Court on 22 July 2024 in accordance with Section 20 (1) of the Industrial Relations Act, 1969 and agreed to be bound by the Court’s Recommendation.

A Labour Court hearing took place on 3 December 2024.

RECOMMENDATION:

The Dispute

The Worker was employed as Chief Medical Scientist by the HSE (‘the Employer’) at University Hospital Kerry until his retirement on 26 November 2023. A special pay award was granted in 2024 that had the effect of restoring pay parity between Medical Scientists and Biochemists. The details of that special pay award are set out in HSE HR Circular 005/2024 and Department of Health Circular 2/2004. The Worker is seeking to have his pension payments recalculated to take account of the revised salary scales now applicable to Medical Scientists.

The Union’s Submission

The Union submits that the provision in Department of Health Circular 2/2004 that limits the application of the revised pay scales to “those in post on or after 1 January 2024” and “to pension benefit calculations for retirement from 1 January 2024 only” was unilaterally introduced by the Employer and was not agreed with the Trade Unions. The Union further submits that the provision “does not adhere to the current pension increase policy of maintaining parity between the pay of serving staff and pensions in pre-existing public service pension schemes”.

The Employer’s Submission

The Employer refers to a Report published by Conal Devine and Associates in January 2023 which recommended the reintroduction of pay parity between Medical Scientists and Biochemists. The implementation of the Report was subsequently the subject of a Labour Court Recommendation (LCR22780, dated 29 June 2023).

In its Recommendation, the Court noted that both the Union and the Employer substantially agreed with the content and recommendations of the Report but that the Employer’s view was that further discussion between the Parties was required in relation to its implementation. The Court recommended that “the implementation date for the recommendation in the report should be no later than 1st January 2024”.

The Employer submits that the 1 January 2024 implementation date was subsequently agreed at the National Pay Talks and that this agreement was reflected in the aforementioned circulars that issued in April 2024. The Employer further submits that to retrospectively apply the increased pay rates in the calculation of pension benefits of workers who retired before 1 January 2024 would be cost-increasing and contrary to the Public Services Agreement and would be likely to lead to repercussive claims.

With specific regard to the circumstances of the Worker on whose behalf this dispute has been referred to the Court, the Employer points out that he is a member of the HSE Employee Superannuation Scheme and that pension increases under that scheme are governed by section 13 which provides:

“The Executive may grant such increases in such pensions and preserved pensions under this Scheme as may be authorised from time to time by the Minister with the consent of the Minister for Finance”.

The Employer submits that approval was not granted by the Minister for Health to pass on the increased salary to those medical scientists who retired before 1 January 2024 as the Minister set the effective date for the new salary for medical scientists as 1 January 2024.

Discussion and Recommendation

It is not within this Court’s remit to gainsay the provisions of a Departmental Circular or the Rules of the HSE Superannuation Scheme. Under the latter, it is clear that a decision of the Minister for Health (with the consent of the Minister for Public Expenditure and Reform) is required to ground an increase in payments to pensioners. It is apparent from Department of Health Circular 2/2004 that the Minister for Health did not make a decision increasing the pension entitlements of those medical scientist pensioners who had retired before 1 January 2024 in line with the revised salary scales that came into effect for medical scientists in post on 1 January 2024.

For the foregoing reasons, the Court finds that the Worker’s claim is not well-founded and should not, in the Court’s view be conceded.

The Court so recommends.

	Signed on behalf of the Labour Court
	Alan Haugh
TH	______________________
11th December 2024	Deputy Chairman

NOTE

Enquiries concerning this Recommendation should be addressed to Therese Hickey, Court Secretary.