Call Us
08000 224 224
Seriously damaging trust and confidence
Levels of interest
Bargaining on pensions
Revising TUPE
Unprotected sex discrimination
Cullen 2 Railtrack 0
Not yet come of age
UNIFI v Union Bank of Nigeria [2001] IRLR 712
After a successful application for trade union recognition under the statutory procedure, the aim is for the parties to agree a method of collective bargaining. In most cases this is unproblematic. If the parties are unable to agree they can seek the assistance of the CAC who will impose a method of recognition. A CAC imposed method will be legally binding and trigger the legal right to consultation on training.
The CAC has now made its first decision imposing a recognition method and in so doing was asked by the parties to determine whether the obligation to negotiate on "pay" included negotiation on pensions.
The CAC have decided in the case of UNIFI v Union Bank of Nigeria that employer's contributions in a defined contribution or "money purchase" pension arrangement are pay for statutory recognition collective bargaining purposes. By extension it would appear to apply to the benefits payable by a defined benefit or "final salary" pension scheme. This does not give a licence to bargain on the structure of a scheme, on issues such as the composition of the trustee body or the reconstruction or termination of a scheme. Benefits, not structures, are the key.
Under the statutory recognition procedure the CAC decisions are not binding authorities as such but apply to the case in question. Other CAC panels are not necessarily bound by previous cases so the decision will not necessarily be followed in future cases.