BUG #2540: function upper(..) and operator 'like' problem

The following bug has been logged online:

Bug reference: 2540
Logged by: radoslaw wisniewski
Email address: radzimir(at)freenet(dot)de
PostgreSQL version: 8.1.4-2
Operating system: Linux
Description: function upper(..) and operator 'like' problem
Details:

function upper combined with like opertaor and german umlauts (db encoding
UTF8) fails.

Working example in some query:

select * from test where upper( name ) like upper('%Strk%')

Not working example:

select * from test where upper( name ) like '%STRK%'

function lower seems to have the same problem.