Analysis: Public pay set to cause problems for new government

Recent productivity gains unlikely to be rolled back, according to Coalition sources

Some of the difficulties likely to face the proposed commission on public-service pay envisaged in the Fine Gael-Fianna Fáil agreement are already emerging.

Yesterday, nurses became the latest group of State employees to demand an acceleration in the process of restoring pay which was cut following the economic crash.

Nurses also became the latest group to look for a special review of their remuneration, based on the what they described as unique features of their employment and difficulties being experienced in their sector.

The Irish Nurses’ and Midwives’ Organisation (INMO) argued that the role its members played in the health service had expanded rapidly over recent years. Nurses, for example, have taken over some tasks previously carried out by doctors under a recent deal.

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Nurses are now seeking that a value be placed on this new, broadened role in an immediate review of salaries.

Unique challenges

INMO general secretary

Liam Doran

said nursing and midwifery faced such unique challenges that they could not be addressed in an overarching agreement that spanned all groups in the public service. The INMO has pointed to major difficulties being experienced by hospitals in both recruiting additional nurses and holding on to those they already have.

The union contends that these problems will not be resolved without both pay and increased working hours which were introduced in recent years being addressed.

However, nurses are not the only group who want their specific terms and conditions assessed.

A Garda pay review is already under way which representative bodies hope will lead to increases in remuneration.

Garda bodies, for example, have argued that increases are justified on the basis of the unique risks their members face in the line of duty.

Doctors’ contracts

The Government will also come under pressure from medical organisations to review the contracts of consultants, GPs and non-consultant doctors on the grounds of staff shortages and changes in roles and work practices.

While the Government has indicated a willingness to engage with public-service groups on pay restoration within certain conditions – most recently earlier this week on cuts to allowances for new entrants introduced in 2012 – the issue of rolling back working hours may be more problematic.

The additional 1½ hours a week introduced for nurses goes a long way to generating about €200 million in savings on the health budget realised under the Haddington Road agreement. A shorter working week, the argument on the official side goes, would lead to more expensive agency staff having to be hired to fill the gaps.

The issue of additional working hours may also become a flashpoint with second-level teachers in the very near future.

However, highly placed Government sources this week were adamant that while pay restoration was on the table, productivity gains realised over recent years would not be handed back.

Martin Wall

Martin Wall

Martin Wall is the former Washington Correspondent of The Irish Times. He was previously industry correspondent