FEWER THAN 3,000 staff in the Health Service Executive (HSE) are now expected to leave the service under the Government’s voluntary redundancy and early retirement schemes.
The Government initially said that up to 5,000 could leave the HSE under the two schemes announced last month. Minister for Health Mary Harney said last week that a total of 3,775 staff in the health service had initially applied to leave. But senior HSE management told trade unions on Monday that about 800 staff had so far changed their minds and withdrawn their applications, meaning approximately 2,975 are now set to leave.
Under the rules of the schemes, staff who applied to leave had a further week or so to change their minds before their applications became irrevocable. This figure of 800 could change further as unions maintained that not all staff who applied had received full details on their entitlements under the Government’s schemes.
The Government had initially suggested that up to 5,000 staff in the HSE could leave under the voluntary redundancy and early retirement schemes. HSE management had forecast that between 3,000 and 5,000 staff could opt to depart under the schemes.
The Government had initially allocated €400 million to cover the cost of the voluntary redundancy and early retirement schemes. However, last week figures given by Ms Harney to an Oireachtas committee suggested that the bill for the schemes could be much less than originally forecast. The Minister told the Oireachtas Committee on Health and Children that a supplementary estimate of €250 million would be required for the HSE this year to cover the cost of the schemes.
Ms Harney said the €250 million figure was a “notional” one because it was as yet unclear on the final numbers for staff who would be leaving the HSE.
The Government initially believed the schemes would generate savings of about €200 million but in its Budget statement yesterday, the Department of Health scaled back this figure to savings of up to €123 million next year. It said the actual numbers who avail of the terms and the associated payroll savings would not be finalised until early in January.
The Government’s voluntary redundancy and early retirement schemes had been primarily aimed at staff in management, administrative and clerical positions.
However, applications were also accepted from staff in support grades. The HSE has said that about 70 per cent of applications came from administration and management grades, with the remaining 30 per cent drawn from support personnel. The Government wants employees who are taking the packages to leave by the end of December