Statutory Instruments

Dáil Éireann Debate, Tuesday - 26 April 2022

Tuesday, 26 April 2022

Questions (88)

Bríd Smith

Question:

88. Deputy Bríd Smith asked the Minister for Transport the reasons for the ongoing delay in signing the statutory instrument to give effect to changes in the regular wages scheme for CIÉ workers; when the signing of this statutory instrument will be finalised; if he can give reassurances to CIÉ workers that have retired since June 2020 or will retire shortly that any improvements agreed will be backdated and paid to them; and if he will make a statement on the matter. [20970/22]

Oral answers (6 contributions)

Deputy Bríd Smith

In June 2020, CIÉ workers in the regular wages pension scheme voted to accept changes to that scheme. Since then, on at least a dozen occasions I have asked the Minister and his Department the same question that I am asking today. When will the Minister sign the statutory instrument to give effect to those changes in their pensions?

Deputy Eamon Ryan

I thank the Deputy for her question and for the opportunity to update the House on the status of the CIÉ regular wages scheme.

As many Deputies are aware, the CIÉ Group has two pension schemes, namely the regular wages scheme and the 1951 superannuation scheme and issues relating to these schemes are primarily a matter for the trustees, the CIÉ Group and its employees. That being said, I understand that the CIÉ group is actively engaged in introducing changes to both schemes aimed at rectifying a significant deficit that currently exists in order to meet the statutory minimum funding standard required by the Pensions Authority.

A ballot of the members of the regular wages scheme on a proposal by the Workplace Relation Commission, WRC, took place in June 2020 and was carried by 83% of those who voted. The proposed changes were agreed by the trustees of the scheme, the employees and the CIÉ Group following extensive and prolonged engagement between all parties.

Following this process, CIÉ prepared and submitted draft statutory instruments to my Department to give effect to the proposed amendments, to establish a new defined contribution scheme, and to consolidate the existing statutory instruments comprising the main scheme. These changes involve significant amendments which are necessary to address the minimum funding standard requirements.

As the Deputy is aware, there are a number of steps involved before a statutory instrument can be made, including the statutory consultation process which took place and ended on 28 February 2022. Officials in my Department are reviewing the submissions received and processing some minor textual edits through legal advisers. I expect that this due diligence will be completed shortly. Thereafter, a report and the final statutory instrument will be submitted to me for consideration. I must also consult with the Minister for Public Expenditure and Reform, as required under the transport Act.

On the Deputy’s query regarding backdating of benefits for those who have retired or are due to retire shortly, the draft statutory instruments provide that benefit improvements will apply retrospectively from the date of the ballot in June 2020.

I reassure the Deputy that the Department is working to finalise the statutory instruments as expeditiously as possible.

Deputy Bríd Smith

I acknowledge that the ballot took place in June 2020 and that the changes were agreed by the workers, but this is the end of April 2022. Why is this important? It is because it says a lot about how, at senior levels, the Department and the State view bus drivers, train drivers and transport workers generally and about the priority they are afforded. They will get an increase of €30 a week in the pension from a meagre €130 to €160 and they will get an increase in their lump sums of €20,000. This will make a huge difference to their lives. My father worked in Dublin Bus, which was then called CIÉ, for 40 years and retired on a pension of £16. Thanks be to God it has improved hugely but it is still meagre compared to what the Minister will get and compared to what I will get. The lack of urgency with which we are dealing with this says a great deal about how the Department and the State treat some of our most front-line workers. We saw how important they are to society during Covid. When will the Minister sign the statutory instrument that will give effect to these increases?

Deputy Eamon Ryan

I expect to do so in the next couple of weeks. There will be no one happier than me to be able to do so. I do not believe that in the Department or, certainly, in the political system there is any reluctance or any desire for delay. I agree with the Deputy that we have to value, protect and provide for all our transport workers, especially as the ballot went through. We should honour the result. and I have every intention of doing so. We had to go through the public consultation process. It is very close to completion. It then has to go to the Minister for Public Expenditure and Reform. There will be no delay on our part. I expect we will have it completed in the next couple of weeks.

Deputy Bríd Smith

I am sorry for labouring the point but it needs to be laboured. In early 2021, the Minister told me, and it is on the record, that he hoped to have this statutory instrument signed by the third quarter of 2021. It is now the second quarter of 2022 and there is no sign of it being signed. I hope I do not have to explain to the Minister or to anybody else who has any sense of how workers survive and thrive after many years in a job what that increase would mean to them on a daily basis. I get regular inquiries from bus workers and train drivers as to when they will get their pension increase. I hope the Minister understands this.

As an aside, there should be a bit more urgency about how we deal with retired workers. I have made this point to the Minister of State, Deputy English, with regard to a Bill I have before the House. Many of these workers will die much younger than those of us who do white-collar work precisely because they do blue-collar manual work. Statistics show their life expectancy is not as high as that of other groups of workers. I plead with the Minister to deal with this with some urgency and give us reassurance that all of the payments will be backdated for those who have lost out so far.

Deputy Eamon Ryan

I am happy to give this reassurance. With regard to the issue that it is not in sight, it will be done in this quarter. It is in the absolute final stages. I would have preferred to have had it earlier but we have to go through the statutory process and get all of the regulatory measures in place. This has been pretty much completed. It will be signed I expect, unless there is something untoward or unexpected. It will be there. We do need to provide for these pensions and provide the increases that have been agreed. I look forward to signing it and getting it introduced within the next two weeks.