Labour Court Database __________________________________________________________________________________ File Number: CD91130 Case Number: LCR13309 Section / Act: S67 Parties: MILFORD CENTRE - and - IRISH NURSES ORGANISATION |
Claim by the Organisation to have public service "special" awards paid to nurses at the Milford Centre from the date of the award.
Recommendation:
5. The Court takes the view that, in the absence of any agreed
arrangements to the contrary, Milford House should continue its
practice of paying parity with nurses in the Public Sector
institutions. This arrangement should be examined later in the
light of changes which may occur as a result of new legislation.
The Court so recommends.
Division: Mr O'Connell Mr Brennan Mr Rorke
Text of Document__________________________________________________________________
CD91130 RECOMMENDATION NO. LCR13309
THE LABOUR COURT
INDUSTRIAL RELATIONS ACTS 1946 TO 1990
SECTION 67, INDUSTRIAL RELATIONS ACT 1946
PARTIES: MILFORD CENTRE
(Represented by the Federation of Irish Employers)
AND
IRISH NURSES ORGANISATION
SUBJECT:
1. Claim by the Organisation to have public service "special"
awards paid to nurses at the Milford Centre from the date of the
award.
BACKGROUND:
2. The Little Company of Mary (L.C.M.) provides care for the
terminally ill and the elderly at Milford, Castletroy since the
1920's. The following range of community services are provided.
(a) Milford House - a 49-bed private nursing home
(b) Milford Hospice - a 20-bed unit for terminally-ill
patients
(c) Home Care Team - 7 nurses providing symptom and pain
control to terminally-ill patients in their own homes.
Milford House employs a total of 38 staff including 11 Registered
General Nurses (R.G.N.s) and 2 State Enrolled Nurses (S.E.N.s).
In addition, cover is provided from a pool of experienced casual
staff of all grades. Milford Hospice (including the Home Care
Team) employs a total of 27 staff including 14 R.G.N.s and 4
S.E.N.s. Since 1989 the parties have been in dispute over the pay
of nurses at the Milford Centre. The Organisation claims that the
pay of the nurses concerned has been traditionally linked to the
movements in pay rates of nurses in the Public Sector and should
be maintained. Public Service nurses received a "special
increase" of 6% in three phases in 1989/1990. The nurses
concerned have been paid the first increase of the 6% i.e. 2.4%
from 1st January, 1990 and Management has offered to pay the
balance of 3.6% from 1st January, 1991. A further 10% "special
increase" is currently being implemented for Public Service nurses
in three phases. However Management is not agreeable to implement
the 10% precisely in line with the Public Sector. The
Organisation claims that the Centre is in breach of a clearly
defined relationship and is insisting that the special awards must
be paid in line with the Public Sector. Management has rejected
the claim. The issue was referred to the conciliation service of
the Labour Court on the 5th November, 1990. A conciliation
conference was held on the 17th January, 1991 but no agreement was
reached. The dispute was referred to the Labour Court on the 13th
February, 1991. A Court hearing was held in Limerick on the 15th
May, 1991.
ORGANISATION'S ARGUMENTS:
3. 1. Management has refused to pay the special awards on the
due dates and their insistence on paying these awards on a
date selected by themselves with no retrospection is in
breach of the established practice that has existed for many
years. For example in 1978 when the special award of 23% was
granted to staff nurses this was paid at Milford Centre from
the due date in line with all other health agencies,
including private establishments like the Bon Secour
Establishments who receive no funding from the Department of
Health.
2. The non-payment of special awards from the due date
means that the salaries of nurses at the Milford Centre are
well below those of their colleagues in the health care area.
(Details supplied to the Court).
3. Management has paid the special award of 6% as follows:
Milford Centre Award Due
2.4% 1st January, 1990 1st July, 1989
with no retrospection
1.8% 1st January, 1991 1st April, 1990
1.8% 1st January, 1991 1st October, 1990
with no retrospection
Despite the fact that the payment without correct
retrospection was rejected by the Organisation, Management
paid it as and from when they saw fit.
4. The delay in payment of special awards with no
retrospection, means that for the duration of this period,
there is also a considerable loss in premium earnings of the
nurses at Milford Centre in that, Sunday premium rate -
double time per hour worked and night duty premium rate -
time + .25 are calculated on a much lower salary scale
figure.
5. The nurses concerned have to date suffered a severe loss
of earnings in salary and premium payments. If Management
continues with the present situation there will be even
greater losses for the nurses concerned, when the 10% special
award due from 1st May, 1990 is eventually paid without
retrospection.
MANAGEMENT'S ARGUMENTS:
4. 1. All employees at Milford Centre are private sector
employees and any arrangements for public service employees
do not apply automatically to them.
2. In framing their annual budgets, Management has been
prepared to consider increases over and above the general
increases under the PNR and the PESP. However, such
"special" increases can only be considered in conjunction
with the financial position of the Centre.
3. Despite the objective of the LCM that Milford Nursing
Home reach at least a break-even situation, the Nursing Home
has continued to make financial losses since 1986. Milford
Hospice, despite its improved financial position, continues
to be heavily reliant on fund-raising to meet the shortfall
in day to day running expenses. Both the Nursing Home and
Hospice will have many additional costs to meet in 1991 and
future years.
4. The offer already made by management, to pay the
additional increase of 3.6% from 1 January last, will add
significantly to pay costs, as will the implementation of
LCR12770 also from 1 January 1991, introducing premium
payments for night duty for nurses. Further costs may arise
from consequential claims for these premium payments from
other grades.
5. Total labour costs at Milford have risen steadily in
recent years because of a number of significant improvements
in pay and conditions (details supplied to the Court).
6. Under the Nursing Home Act, Milford House will lose its
automatic entitlement to Health Board subvention, giving the
Health Boards greater control on the type of patients staying
at Milford. This could further reduce the Nursing Home's
income from maintenance charges, which has already been
reduced by the recent reduction in the number of beds from 51
to 49.
7. Rates of pay and conditions of employment at Milford are
already significantly better than those obtaining in nursing
homes around the country. An analysis of the rates of pay
and conditions of employment in a sample of 22 nursing homes
has been undertaken by Management (Details supplied to the
Court). This analysis was undertaken in late 1989 on behalf
of the Irish Private Nursing Homes Association and clearly
shows Milford rates as being significantly better than in
other nursing homes.
RECOMMENDATION:
5. The Court takes the view that, in the absence of any agreed
arrangements to the contrary, Milford House should continue its
practice of paying parity with nurses in the Public Sector
institutions. This arrangement should be examined later in the
light of changes which may occur as a result of new legislation.
The Court so recommends.
~
Signed on behalf of the Labour Court
7th June, 1991 John O'Connell
T.O'D / M.O'C. _______________
Deputy Chairman