Irish Water defends bonus scheme for staff

Irish Water executives have defended offering their staff performance related bonuses following political pressure not to proceed with the payments.

John Tierney, the company's managing director, said that even with the bonus payments, which will average 10 per cent of a worker's salary, the new semi-state will have cheaper wage costs than similar organisations.

John Barry, another Irish Water executive said the bonuses, which are available to all staff except Mr Tierney, help motivate workers and achieve results.

Both men appeared before the Public Accounts Committee this evening to address public concerns over spending levels at the utility.

Their comments follow statements from Minister of State for Finance Brian Hayes that the bonuses should not be made, and Minister for Social Protection Joan Burton that she was surprised contractual provision had been made for them.

Mr Tierney said the wages and pay structures offered to staff in Irish Water were based on those of Bord Gáis, which paid it staff an average of €70,000.

He also the Department of Communications, which has ultimate responsibility for Bord Gáis, would have been aware of these arrangements.

“Everyone employee has the opportunity based on performance,” Mr Tierney said. “If somebody competes in an open competition for a post, they apply and compete on the basis of the conditions set within the structure of Irish Water for the post.”

Mr Tierney said that even with the performance related bonuses Irish Water will be a low cost company since it does not have incremental pay scales and currently has a pay freeze in operation.

He said it was “quite humbling” to work with such motivated staff.