Written answers

Tuesday, 25 November 2014

Department of Jobs, Enterprise and Innovation

Industrial Relations

Photo of Catherine MurphyCatherine Murphy (Kildare North, Independent)
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133. To ask the Minister for Jobs, Enterprise and Innovation his views on bringing forward legislation to provide for the right of former employees and pension beneficiaries to be represented and negotiate on their own behalf within the industrial relations architecture of the State; the reason such a measure has not been considered up to now; if he will confirm that there is a precedence for such a measure going back to the 1970s; and if he will make a statement on the matter. [44334/14]

Photo of Richard BrutonRichard Bruton (Dublin North Central, Fine Gael)
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I fully appreciate the concerns of retired and deferred members of pension schemes whose schemes are being restructured, particularly where such restructuring may impact on existing or potential pension benefits.

The question of whether it is appropriate that pensioner groups have access to the State’s industrial relations machinery in pursuing pension scheme grievances has been raised for consideration.

It should be pointed out that the Trustees of a particular pension scheme are already required by law to act in the best interests of all the members. On that basis the trustees have to take account of the interests of the deferred and pensioner members in any proposals they make.

This is an issue to which I have given careful consideration, particularly in light of representations made to me in this regard.

In addition, my Department also consulted with the industrial relations bodies under the auspices of my Department on the issues that arise in the context of collective representation of retired and deferred members of pension schemes in such circumstances.

In this context, it is important to stress that the industrial relations system in Ireland is voluntary in nature both as regards access to the Labour Relations Commission and the Labour Court. Any change to that principle which would put in place a mandated right to be part of the process would alter fundamentally the conduct of industrial relations.

As it stands, active members of pension schemes (through their Trade Unions) regularly engage with the employer to attempt to reach a common position as regards changes to pension schemes whether as a result of a crisis in the scheme or otherwise. In all such cases the outcome of that engagement can only be a collective agreement which cannot, of itself, change the pension scheme. Any proposed changes to the scheme are effected via the mechanisms set out in the trust deeds and rules of the scheme and are at the discretion of the parties so designated in the rules/deeds of the scheme. It may be that it is within this framework that a collective approach could be most effective.

Legal advice received by the Labour Court on a number of occasions since the 1970s suggests that a person who is retired cannot be regarded as a worker and cannot be party to a trade dispute capable of investigation by the Court. Where a person is retired they cannot have a dispute concerning their employment or non-employment.

I can say, however, that I am currently considering the introduction of access rights for individual retired workers to the industrial relations machinery of the State under the Industrial Relations Acts, where they have not referred their claim prior to their retirement.

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