Merger implementation and officials’ pension rights
The Minister says there is daily contact with the Registrar of Friendly Societies’ office and confirms extra staff have been provided to avoid delays to the proposed merger. He explains that current law assists officials over 55 with pension or early-retirement arrangements, but says this can deter smaller unions; planned legislation would remove the requirement for a merger to succeed before assistance is available.
Can the Minister assure the House that there will not be any obstacles to the merger coming into effect on 1 January next? I anticipate that problems could arise in the office of the Registrar of Friendly Societies which is not over-staffed. Has the Minister been in contact with his colleague, the Minister for Industry and Commerce, to ensure that there will not be any delays at that level? I anticipate that that office could encounter some problems vis-á-vis a voluntary organisation, dealing with a non-contentious issue, which could constitute an obstacle to the merger coming into effect on 1 January next?
Comment on this
To what extent does present legislation provide for matters such as pension rights of existing trade union officials involved in amalgamations? Would he envisage some legislative provision to cover that aspect which I think is one of the difficulties hindering the implementation of a merger?
Comment on this
It is one of the difficult areas. The present legislation does cover trade union officials over the age of 55 in the event of amalgamations, in that they could be assisted either by way of pension or early retirement. It does act as a disincentive for small trade unions particularly. It should be borne in mind that there are a huge number of trade unions, particularly small ones which could not afford to provide attractive pension rights for their full-time officials. Therefore, there is no incentive for them to become involved because, since they would have no money starting off, they could not resolve the difficulty. That is one of the greatest difficulties the present legislation presents. It is interpreted to mean that only when an amalgamation is signed, sealed and delivered by the office of the Registrar of Friendly Societies can they receive any moneys.