Labour Court Database __________________________________________________________________________________ File Number: CD89361 Case Number: LCR12485 Section / Act: S67 Parties: SIMPSONS HOSPITAL - and - FEDERATED WORKERS UNION OF IRELAND |
Claim by the Union for the implementation of the Programme for National Recovery and the establishment of a pay relationship with the Eastern Health Board.
Recommendation:
5. The Court having considered the submissions of the parties
recommends that the terms of the Programme for National Recovery
be implemented with effect from 1st January, 1988.
The Court further recommends that the parties negotiate the
phasing of the arrears due, subject to the arrears being paid in
full by 31st December, 1989.
The Court does not recommend concession of the Union's claim for
the establishment of a pay relationship with members of the
Eastern Health Board Institutions.
Division: MrMcGrath Mr Shiel Mr Walsh
Text of Document__________________________________________________________________
CD89361 RECOMMENDATION NO. LCR12485
INDUSTRIAL RELATIONS ACTS, 1946 TO 1976
SECTION 67
PARTIES: SIMPSONS HOSPITAL
(REPRESENTED BY THE FEDERATED UNION OF EMPLOYERS)
AND
FEDERATED WORKERS UNION OF IRELAND
SUBJECT:
1. Claim by the Union for the implementation of the Programme for
National Recovery and the establishment of a pay relationship with
the Eastern Health Board.
BACKGROUND:
2. The hospital concerned in this dispute was established in
1799. It is a registered charity and operates without direct
State funding. For legal reasons, the hospital is required to
operate within the strict terms of its charter, which states that
the hospital be established for the purpose of caring for "poor,
decayed, blind and gouty men." The hospital is currently taking
legal advice with a view to broadening the range of patients
admitted, and particularly to admit women. The Union claimed that
the non-nursing staff of the hospital had not had an increase in
basic rates since about 1981, and consequently the rates are out
of line. (The rates in the hospital are available to the Court).
The Union, on behalf of the workers sought:-
(a) The implementation of the terms of the Programme
for National Recovery, and
(b) The acceptance by the hospital of a relationship
with the staff in either the Eastern Health Board
or the Voluntary Hospitals in relation to pay and
conditions, these to be phased in on an agreed
basis.
The hospital stated that it was in a very difficult financial
position, having no direct State funding and being forced to
operate within the confines of a severely restrictive charter. It
is in a position to offer the terms of the Programme of National
Recovery from date of acceptance, but can offer no more than this.
Agreement could not be reached on the issue at local level, and on
31st March, 1989 the matter was referred to the conciliation
service of the Labour Court. A conciliation conference took place
on 4th May, 1989 but no agreement was reached. The matter was
then referred to the Labour Court for investigation and
recommendation on 17th May, 1989. A Labour Court hearing took
place in Dublin on 10th July, 1989.
UNION'S ARGUMENTS:
3. 1. The workers concerned in this dispute have not received a
pay increase since the early 1980s. They are low paid by any
definition. The evidence clearly shows that the workers are
significantly behind similar staff who are employed in Eastern
Health Board institutions and engaged in similar duties.
2. The Union accepts that the hospital is operating under
financial constraint. However, the Union's request to have an
ICTU nominee examine and make recommendations on the financial
structure and organisation of the hospital was rejected by
management. The Union believes that a more imaginative legal
approach would enable the hospital to escape the constraints
of its 200 year old charter. The Union considers its claims
to be well founded and requests the Court to recommend in
favour of the workers.
HOSPITAL'S ARGUMENTS:
4. 1. The principal form of income available to the hospital is
that generated by patient contributions. No contributions are
made by patient relatives. Patient contributions fall short
of wage and salary expenditure, (details supplied to Court).
The Eastern Health Board does provide a daily subvention rate
per patient. In recent times however, Health Board funding
tends to be paid significantly in arrears, which causes great
cash flow difficulty.
2. The hospital's operations are particularly constrained by
its very strict Charter and the limitations on the type of
patient deemed suitable. The difficulty arises in finding
suitable referrals within the meaning of the Charter when an
existing patient dies. It might be noted that on the death of
a patient both the State Pension and Eastern Health Board
contribution terminates immediately. The Charter also
precludes acceptance of female patients. Legal advice has
been sought on the question of the preclusion of females. If
females were acceptable, constraints would be loosened and an
opportunity to increase patient numbers and income would be
created. However, investment in structural alteration would
be required.
3. 3. The Union has suggested that the administration of the
hospital be handed over to the Eastern Health Board. However,
legal advice would indicate that the Hospital Charter
precludes passing over the hospital administration to the
Health Board. The Union has also been advised that owing to
financial difficulties the closure of the hospital is a very
real option at present. (Details supplied to Court).
Concession of the Union's claim would have serious
repercussive effects, as it would give rise to knock-on claims
from the nursing staff in the hospital. In the circumstances,
the Court is asked to reject the Union's claim.
RECOMMENDATION:
5. The Court having considered the submissions of the parties
recommends that the terms of the Programme for National Recovery
be implemented with effect from 1st January, 1988.
The Court further recommends that the parties negotiate the
phasing of the arrears due, subject to the arrears being paid in
full by 31st December, 1989.
The Court does not recommend concession of the Union's claim for
the establishment of a pay relationship with members of the
Eastern Health Board Institutions.
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Signed on behalf of the Labour Court,
Tom McGrath
___28th___July,___1989. ___________________
P. F. / M. F. Deputy Chairman