ALL PARTY BRIEFING. 25 September 2013. MOTION ON ASSETS/OWNERSHIP.
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25 September 2013
This Conference mandates the GOU/affiliates to formulate a policy and enable a ballot of Union members in ESB for industrial action – up to and including strike action (full withdrawal of labour) - in the event of steps being taken to implement any further sale, disposal, transfer or divestment of assets.
21 September 2013
You are in a MANDATORY defined benefit scheme
These defined benefits are based on salary and service
Under the CARE proposal, the scheme remains a defined benefit scheme
There are 3 types of measurement system for DB schemes, all operating in parallel and all with their own implications. These are :
Minimum Funding Standard (MFS)
IAS 19(International Accounting Standard)
PRE ‘WIND UP’
POST ANY ‘WIND UP’
Detailed documentation, and communication on this and all pension related issues is available to members(and will continue to be) at ……………..
‘Under the CARE proposal the scheme remains a defined benefit scheme’
Proposals between ESB and the Group of Unions representing staff on the issues of Pension Review and related matters 2010
‘ESB does not intend to make further payments to the Scheme to address future deficits, no matter what the circumstance, other than regular employer fixed rate contributions, as specified in the current Scheme Regulations, of up to 16.4% of pensionable salary’
2009 Annual Report & Accounts (Page 107)
These accounts confirm the scheme as a DB scheme and print a liability in the company accounts at €1.957bn.
2010 Annual Report & Accounts (Page 71)
‘Following the approval of a comprehensive agreement with staff to address the actuarial deficit arising on this scheme, the extent of the employers and of the members obligation in respect of the scheme were clarified. Accordingly, from October 2010 the scheme is accounted for as a Defined Contribution scheme.’
€80m pension levy(which ESB refuse to pay or contribute towards)
Meet MFS or be ‘wound up’
Fund ‘risk reserves’ from 2018 (ESB accounts will not allow them to fund any of this)
‘Three legged stool’ approach
2. Political Strategy
3. Industrial Strategy
YOU THE ACTIVE MEMBERS HAVE BEEN LEFT CARRYING THE ENTIRE RISK - ALONE
most of EDT
The entire risk
Change to accounts would have ‘consequences’
ANSWER - The 2010 change already has had the consequence of shifting all of the pension risk on to (fewer and fewer) active members
Every day that continues, the risk grows and the burden on active members grows
In pensions there are ‘no guarantees’
ANSWER – Based on accounting fiction the ESB has guaranteed profits, the government have guaranteed dividends, the retired staff have guaranteed pensions, NIE staff have an absolutely guaranteed ESB pension but..
ESB’S OWN SKILLED AND LOYAL WORKERS ONLY GUARANTEE IS UNSUSTAINABLE RISK WITH ALMOST CERTAIN DISASTER FOR THEIR PENSIONS
That this Conference instruct affiliates to ballot their members for Industrial Action, up to and including Strike Action, until ESB revert to recognising the main staff pension scheme as a Defined Benefit pension scheme and until ESB accept their liability for funding current and any future deficits in accordance with the employees terms and conditions of employment and accrued pension entitlements.