Pension row may hit RTÉ services

RTÉ SERVICES could be facing disruption following the decision of staff to ballot for industrial action up to and including strike in a dispute over pensions.

The decision came just hours after the Oireachtas Communications Committee heard from unions at the station that a majority of employees faced retirement on inadequate pensions, while certain senior management figures were receiving contributions from the company of up to 30 per cent of salary.

The dispute is centred on the defined contribution scheme which was introduced by the company in 1989. This scheme, which is dependent on the performance of the pension fund, replaced a defined benefit scheme which guaranteed the level of pension payments.

The RTÉ Trade Union Group is seeking a "hybrid" pension scheme which would offer a certain level of defined or guaranteed pension payments on retirement. The union said it has been campaigning for a fair pension for 10 years but management has failed to engage with the issue "in a meaningful way". From next week union members will have the opportunity to vote in two separate ballots on industrial action which could see a strike at the station.

The 1,200 employees who are part of the defined contribution scheme will be balloted for industrial action in pursuit of a better pension, while the 600 staff in the older guaranteed scheme will be balloted to support their colleagues seeking better pensions.

A spokesman for the company said last night said the defined benefit scheme had been closed for almost two decades and it would be "extremely difficult" to reopen it because there would be a huge deficit of contributions.

"In 1989 we informed the Department of Finance that we were closing the scheme and I don't think it would be acceptable from the department's point of view to reinstate it."

He defended RTÉ's decision to pay some senior management figures a specially enhanced pension, saying it was necessary to entice them from the private sector to work in RTÉ.

The company would continue to work towards a resolution regardless of the outcome of the ballot, he said.

"The big stick of 'strike' won't interfere with our attempts to bring this matter to a satisfactory resolution."

The chairman of the Oireachtas Communications Committee John Cregan (FF) is to write to the Department of Finance to clarify whether the defined benefit scheme could be reopened.