A deal that has settled the long-running Waterford Crystal pensions dispute will cost taxpayers €180 million.
A sum of €41 million will be made available in a lump sum to the 1,774 deferred members of the Waterford Crystal pension who saw their entitlements destroyed when the company and its occupational pension scheme were wound up in 2009.
The deal was approved by the Cabinet yesterday. It followed mediation by the chairman of the Labour Court, Kieran Mulvey.
The deal is being recommended by trade union Unite and, if approved, will see payment of 90 per cent of the value of pensions up to €12,000; 67 per cent of the value of pensions between €12,000 and €24,000; and 50 per cent of the value of any pensions worth more than €24,000.
There will be a cash compensation payment of €1,200 per year of service up to 40 years.
The State was found to be liable when the European Court of Justice ruled that it did not have protections in place to ensure that staff would get at least 49 per cent of their accrued pension benefit.
The case was due to be held in the High Court on January 13th next year, but the State decided not to contest.
The workers will receive 82 per cent of the benefits they could have expected had their pension fund not become insolvent.
Mediated process
Announcing the Cabinet decision, the Tánaiste and Minister for Social Protection
Joan Burton
said a mediated process had been a “very good outcome for the workers”.
She said proposed social welfare legislation, currently progressing through the Oireachtas, was being amended to allow for payments to the former workers in the new year. She understood the workers would have to examine the proposal but their union was recommending acceptance.
Ms Burton said Waterford Crystal workers had been left “pretty much high and dry” after losing their jobs when the company and the pension scheme collapsed in 2009.
The workers were represented by the Unite trade union. Unite regional secretary Jimmy Kelly said it had been a " difficult road since the closure of Waterford Crystal in 2009 – a road that has taken us from the High Court to the European Court of Justice, back to the High Court and finally the Labour Relations Commission".
Mr Kelly described the settlement as a “landmark victory” for workers.
Respect and dignity
The deal was welcomed by the former workers.
Sean Maher
, who had 39 years experience of working in Waterford Crystal, said there was “a lot of relief” for all concerned.
“The biggest thing that it’s going to bring back is respect and dignity.
“It’s going to bring back a sense of belonging after all the time spent cutting and blowing and packing and engraving, all those great great trades.”
