HSE reform ‘unworkable’ unless staff pay award is honoured, says union

About 240 managers are affected by dispute between Fórsa and HSE over recommended 5% pay increase

The leader of the largest public services union has told HSE chief Stephen Mulvany that the processes required to advance the organisation’s reform agenda will become “unworkable” if a recommended pay increase to senior managers is not honoured.

Kevin Callinan, general secretary of Fórsa trade union, says a recommendation - knowns as Report 42 - by the Review Body on Higher Remuneration that a 5 per cent pay increase be awarded to assistant national directors across the public service has been implemented in every area apart from the HSE. Between 100 and 150 managers of that grade are working in the organisation but about 240 people are understood to be affected by the dispute.

The matter was the subject of a recommendation in 2011 from the Labour Court which noted that “both sides are in agreement” that the “award should be paid”.

It said: “The Department of Finance, in April 2008 sanctioned payment of the relevant money and the Department of Health has in effect acknowledged that the complainants are entitled to payment of the first phase of the award...

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“Both sides are in agreement that the 1st phase of the Review Body award should be paid. It is a matter for the parties to bring this about.”

In an email seen by The Irish Times, Mr Callinan told Mr Mulvany the union’s understanding of the situation was that the only obstacle to the money being paid was the Financial Emergency Measures in the Public Interest (Fempi) legislation and that it expected the money would be paid when Fempi was unwound in the middle of last year.

Mr Callinan said the union was now seeking “the immediate application of the award to all affected postholders” and “will regard a failure to do so as serious, precipitative industrial action on the part of the HSE and will consult our members in relation to an appropriate response”.

In the communication, Mr Callinan said the “lack of anything positive” in the HSE’s responses to the union on this matter “would suggest we are in dispute”.

“It seems to us remarkable that the Government would seek to enter into a dispute with those who it will expect to lead its own change programme for the health service as a result of a failure to apply government-approved salary scales,” Mr Callinan said.

He added delivery of planned health reform would be “challenging” with a need for continual consultation and collaboration with the union’s members but “will simply be unworkable” if non-payment of the salary scales continue.

“Although we remain committed to a collaborative approach, you should take note that Fórsa will take appropriate steps to defend the interest of all of our members working in the health service should they face significant change without the agreement of the union.”

In a letter last month to the union, Mr Mulvany said that while he was aware of the unwinding of Fempi and the Labour court recommendations, payment was not “solely within the remit of the HSE to resolve this matter”.

He said, “the HSE can only implement a pay rise for any group of staff with the sanction of the Department of Health, following approval of the Department of Public Expenditure and Reform.”

A spokeswoman for the HSE reiterated Mr Mulvany’s response in his letter from January: “The implementation of any pay increase by the HSE can only follow sanction from the Department of Health, following approval from the Department of Public Expenditure and Reform.”

A spokesman for Fórsa said they are pursuing the issue because “it is a long-running anomaly in public service pay. The members concerned continue to be paid inappropriately. Their equivalent grades in other parts of the public service received the recommended 5 per cent from the 2008 report.

“In the union’s view, this legacy issue is an impediment to plans to lead big health reforms this year, and Fórsa’s pursuit of the issue is an attempt to finally resolve a pay anomaly that has been allowed to continue for far too long.”

The Department of Health has said the issue is due to be addressed under the public sector pay agreement review (Building Momentum) in 2023.

However, in November 2021 Ann Marie Hoey, national director of HR in the HSE, said in an email seen by The Irish Times that “given the size of the fund relative to the potential number of claims, it would prudent to regard the scope for retrospection as limited”.

Fórsa said: “The cost of implementing pay correction has already accrued in HSE accounts, and there is provision in the HSE budget to apply it.”

Documents show the estimated annual cost of the payments is around €1.2 million while the estimated arrears that would be due for the period 2010-2020 is put at €10.4 million.

Jennifer Cosgrove

Jennifer Cosgrove

Jennifer Cosgrove is an Irish Times journalist