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Labour Court urges Vita Cortex and workers to revisit pension scheme

By Gráinne Nolan

Labour Court ·

The Labour Court recommended that Vita Cortex and a group of workers re-engage to find a way to keep their defined-benefit pension scheme operating. The recommendation was signed on 4 September 2007. Vita Cortex had planned to end contributions to the scheme and move to a defined-contribution plan. The workers argued that the change followed no prior consultation and would transfer risk to employees and reduce future pension entitlements. The company said rising costs made the existing plan difficult to fund and said it would increase its 2006 employer contribution by 23%, with the increased contribution paid into the scheme from 1 January 2007. The memorandum had outlined a 7.5% of basic pay contribution for 2006. The Court acknowledged financial difficulties facing both the company and the scheme but said the problem could be overcome with effort and goodwill. It recommended that the parties jointly address how to retain the scheme, with Labour Relations Commission assistance if needed.

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