SIPTU members at Pfizer's two Cork pharmaceutical plants reject Labour Court recommendations

SIPTU members at Pfizer's two Cork pharmaceutical plants have voted overwhelmingly to reject Labour Court recommendations on the company's plans to discontinue their Defined Benefit (DB) pension scheme.

The union's members will now vote on a ballot for industrial action, which could be up to and including strike action.

Around 200 SIPTU employees at Pfizer's Ringaskiddy and Little Island plants voted on Tuesday night to reject the Labour Court recommendations.

Pfizer first proposed the introduction of a Direct Contribution (DC) pension scheme to replace non-contributory DB pension schemes in 2014.

The company said this would be for future accrual only, and it would continue to fund the existing DB schemes in accordance with its obligations.

The Labour Court recommendations included allowing those aged 55 and over to continue on the DB scheme.

A Pfizer spokeswoman said the company was "disappointed" the union had rejected the recommendations as management had accepted them.

Pfizer's current DB pension plans are non-contributory, meaning that employees make no contributions towards their benefits. The company says this is very unusual today in either the private or public sectors.

The proposed changes affect approximately 900 of Pfizer employees across four sites in manufacturing, shared services and commercial operations in Ireland, but doesn't affect deferred members or pensioners on the DB scheme.

Pfizer’s other 1,400 Irish employees are in DC schemes and these schemes are not affected.

The spokeswoman claimed the cost to the company of funding the DB schemes had risen 1000% since 2009 and this is affecting the competitiveness of its Irish operations.

SIPTU divisional organiser Teresa Hannick confirmed that a significant majority of her members had rejected the Labour Court recommendations.

She said two ballots will now be held at each of the plants next week.

The first ballots will take place at Ringaskiddy on Tuesday evening and will be followed the next day with ballots at Little Island.

Ms Hannick said that the first ballot would be for industrial action, which could include overtime bans, work stoppages etc. The second will be for strike action.