Firm told to pay pension scheme

THE LABOUR Court has told building company PJ McLoughlin to pay €522,000 to the construction industry pension scheme in a ruling that the firm said yesterday was based on an inaccurate figure.

The National Employment Rights Agency carried out an inspection at the Longford-based operation earlier this year after trade union Siptu passed on complaints from members who said PJ McLoughlin had not paid contributions to the fund on their behalf, which it is obliged to do.

Based on information it obtained from the company, the agency calculated that it owed the fund €522,856.

The issue subsequently went to the Labour Court, as PJ McLoughlin wanted to dispute the finding, but a director who attended the hearing was unable to produce material to support the company’s position.

The court postponed ordering the company to pay the money to the pension fund to allow it to come back with more information, but when it failed to do this, it ordered PJ McLoughlin to pay the figure into the pension scheme.

However, PJ McLoughlin said yesterday that the calculation of €522,866 is based on an inaccurate figure, and said it is working to have this error corrected.

“We wish to confirm that this company is fully compliant with the construction workers’ pension scheme and that no amounts are actually due,” the company’s statement said. It added that the pension scheme in fact owes it a refund as it overpaid the fund.

Under the agreement between the unions and Construction Industry Federation, which governs pay and conditions for building workers, employers are obliged to deduct contributions from craftsmen and labourers and pay them into the pension fund, which covers retirement, death-in-service and disability benefits.

As the agreement is registered with the Labour Court, employers are legally obliged to comply with its terms. The Construction Industry Monitoring Agency oversees compliance. It applies to building workers but not management and administrative staff.

Separately, Hire Depot, a company run by Donal Rigney, the businessman who was last year jailed for contempt of court, recently agreed a €58,375 settlement with the pension fund.

The High Court last year jailed Mr Rigney, of Mount Bolus, Tullamore, Co Offaly, for failing to comply with an order to hand over machinery used on construction projects in Dubai to finance company Lombard.