Labour Court recommends talks on Dairygold pension arrangements

The Labour Court recommended that Dairygold Co-Operative Society Limited and SIPTU Manufacturing Division discuss pension arrangements for employees who could not join the defined benefit scheme. The recommendation was signed on 11 March 2015. SIPTU sought to reinstate the defined benefit scheme for new entrants after Dairygold introduced a defined contribution scheme in September 2010 without agreement. Dairygold said the old schemes were underfunded and unsustainable, and that it had consulted employees and unions about its pension strategy. The Court noted that the company had no formal agreement with the union on closing the old scheme or on the replacement scheme’s structure. It recommended discussions in the context of industry standards, to conclude within 26 weeks. Any unresolved issues could then return to the Court for a definitive recommendation.