Page 41 - Raco 2017

GENERAL SECRETARY’S REPORT
41
Biennial Delegate Conference 2017
This Parallel Process approach applied during the talks in 2015 on the Haddington Road Agreement (HRA) extension- the Lansdowne Road Agreement (LRA). During these sets of talks RACO & PDFORRA were represented. These discussions resulted in the Lansdowne Road Agreement (LRA), which was accepted by RACO members in a ballot in September 2015. The proposed extension to the LRA is included as an Annex to this report.
2.1 PARALLEL PROCESS 2016/17
RACO have continually expressed their concerns to the Official Side questioning the functional applicability of the Parallel Process. The Association’s experience in these National Pay Talks 2017 has brought into serious question the relevance of this current Parallel Process Structure where it is now blatantly clear that the only “negotiations” being conducted by DPER is with those Public Service Unions who are affiliated to ICTU.
In 2015, this was evidenced by the large number of “side deals” that were negotiated by Public Service Unions and summarised in the ‘Chairman’s Notes’ to the LRA.
Again in 2016, RACO were excluded from negotiations on the Garda ‘Anomaly Talks’ Deal contrary to DPER’s assurance to Government that all parties to the LRA had been consulted. This deal was negotiated solely by the PSC of ICTU and DPER.
Again in 2017, the proposed extension of the current pay agreement talks resulted in a range of “side deals” benefiting only those members of unions affiliated to ICTU.
The continued disparity of treatment, marginalisation and absence of appropriate negotiation status at such National Pay Talks places our Members at an obvious and measurable disadvantage to Public Sector Unions. Unions affiliated to ICTU are successfully influencing DPER in approving “side deals” to win support for any new agreement. The Defence Force Representative Associations are being side-lined by both the Department of Defence and DPER in this context. These Unions are voting on pay & conditions that directly affect our Members and our Association has no credible influence.
Where RACO accept the Government’s position on Defence Forces Representative Association Membership of Trade Unions and Industrial Action, how can the Association have confidence in a Parallel Process in which they are denied credible negotiation status resulting in a significant monetary disadvantage relative to those Public Service Unions affiliated to ICTU. Members see the results of our Industrial Relations position at recent pay talks as Defence Sector Management taking advantage of our members unquestionable loyalty to military service. Members see this position as untenable for the future.
2.2 PUBLIC SERVICE PAY COMMISSION
Government appointed the Public Service Pay Commission (PSPC) in October 2016. This purpose of the PSPC was to advise Government on a range of issues concerning Public Service Pay and Pensions identifying specific Terms of Reference (See Annex ‘B’).
Public Service Unions, Representative Associations and Employer Groups were invited to contribute to the PSPC. In total, RACO submitted three submissions reflecting on the Terms of Reference with additional follow up on Superannuation Reports based on DPER’s Actuarial Review of Public Service Pension Report 2017.
2.3 RACO SUBMISSIONS TO THE PSPC
As an element of RACO’s submission to the Public Service Pay Commission (PSPC), RACO commissioned Trident Consulting (Independent Actuarial Consultants) to conduct an analysis of career pay and superannuation arrangements of Defence Force Officers relative to other Public Servants. This report clearly identifies key differentiators demonstrating the negative financial impact of “career service” for Defence Force Commissioned Officers relative to equivalent grade Public Servants.
The findings are the consequence of the restricted career span by implication of organisation forced early retirement at ages significantly lower than Public Servants (66- 68 by 2028). The findings include;
The financial impact is the cumulated difference between pensions and salary between the mandatory retirement ages of 58 for a Defence Force Officer (Commandant rank) and 68 (Public Servant- all grades) but with a significant long-term differential in pension entitlement making a substantial annual and cumulative lifetime difference.
In total, a Defence Force Officer is projected to receive €1.02m (pre-2013 -final salary based pension) to €1.48m (post 2013 Single Pension Scheme- career average salary based) lower remuneration over their lifetime considering pay plus pension (less pension contributions) than an equivalent grade public servant retiring at 68 years of age. (These