Labour Court recommends first phase of Bord Gáis pay increase be paid

The Labour Court recommended that Bord Gáis Eireann pay the first phase of the Towards 2016 increase from its due date, with further discussions on the second phase. Its recommendation was signed on 26 October 2009. The dispute with Bord Gáis Group of Unions concerned increases due under the agreement, which represented about 850 workers. The unions argued Bord Gáis should honour the agreed increases, citing its €158 million pre-tax profit for 2008 and implementation by other employers. Bord Gáis said economic contraction made immediate payment of the 6% increase imprudent and proposed extra pension funding in exchange for a two-year pay pause. The Court said Bord Gáis was highly profitable and recommended paying the first phase, followed by discussions on the second. Those discussions should consider investing an amount equal to the second phase’s cost in the pension scheme, subject to any national agreement. The Court said the recommendation reflected this case’s particular circumstances.