Labour Court Database __________________________________________________________________________________ File Number: CD9289 Case Number: LCR13666 Section / Act: S20(1) Parties: ELY HOSPITAL WEXFORD - and - THE IRISH NURSES ORGANISATION |
A dispute regarding salary and conditions of employment for 25 nurses at the hospital as follows:- - the introduction of nationally agreed pay rates for nursing staff, - the introduction of proper grading strutures within the hospital, - the application of the standard premium pay rate for night duty, - the payment of annual leave premiums on a retrospective basis, - the introduction of sick pay and a pension scheme, - the issuing of proper agreed contracts to all nursing staff.
Recommendation:
5. The Court notes that this claim seeks to change an historical
situation in which the claimants have had pay and conditions which
are considerably less than those agreed nationally for similarly
qualified staff in the Health Boards. The claim is being
presented now because the claimants were not organised or
represented by a Trade Union until 1990.
Having considered the lengthy written and oral submissions made by
the parties, the Court is of the view that there is merit in the
Union claim. However, the financial position of the hospital is
such that an immediate concession of the claim could put the
continuation of the service in serious jeopardy. The Court,
therefore, considers it necessary to allow the hospital the
opportunity to review its cash-flow before it has to meet the full
impact of the claim.
Accordingly the Court makes the following recommendations for
implementation on a phased basis.
(1) RATES OF PAY:
The aggregate difference in existing pay rates plus
allowances between the Hospital and the Health Boards
should be eliminated over the period ending 1/5/94.
One third of the difference should be paid on 1st
November, 1992 a further third on 1st May, 1993 and the
balance on 1st May, 1994.
(2) GRADING STRUCTURES:
Ward sisters and theatre sisters should be recognised
and paid as in the Health Boards. The equalisation of
the rates and allowances should be implemented as in
(1) above.
(3) ANNUAL LEAVE PREMIUM:
The annual leave premium should be paid in the current
year and arrears of two years' premium should be paid -
one on 1/5/93 and one on 1/5/94.
(5) PENSION SCHEME:
The pension scheme as proposed by Management should be
introduced from 1st November, 1992.
(6) EMPLOYMENT CONTRACTS:
The Court has noted the agreement of the Hospital to
issue written contracts of employment.
Division: Mr Heffernan Mr McHenry Mr Devine
Text of Document__________________________________________________________________
CD9289 RECOMMENDATION NO LCR13666
INDUSTRIAL RELATIONS ACTS 1946 TO 1990
SECTION 20(1), INDUSTRIAL RELATIONS ACT, 1969
PARTIES: ELY HOSPITAL WEXFORD
(REPRESENTED BY THE FEDERATION OF IRISH EMPLOYERS)
and
THE IRISH NURSES ORGANISATION
SUBJECT:
1. A dispute regarding salary and conditions of employment for
25 nurses at the hospital as follows:-
- the introduction of nationally agreed pay rates for
nursing staff,
- the introduction of proper grading strutures within the
hospital,
- the application of the standard premium pay rate for
night duty,
- the payment of annual leave premiums on a retrospective
basis,
- the introduction of sick pay and a pension scheme,
- the issuing of proper agreed contracts to all nursing
staff.
BACKGROUND:
2. 1. The Hospital is privately run by the St. John of God
Order with a total of 51 beds, 20 of which are geriatric and
the remainder medical/surgical. The Hospital employs 25
nurses including casual nurses. Medical care is provided to a
mixture of geriatric and medical/surgical patients, the latter
being mainly VHI patients. Rates charged for geriatric care
are generally in line with those charged by private nursing
homes in the area.
2. The Organisation, in 1990, made a claim on behalf of the
nurses for improvements in salary and overall conditions of
employment. Following local discussions, the dispute was
referred to the Labour Relations Commission in April, 1991. A
conciliation conference was held in July and no progress was
made. The Hospital refused to join in a referral of the
dispute to the Labour Court and the Organisation decided to
refer the dispute, on 4th February, 1992, to the Labour Court
under Section 20 of the Industrial Relations Act, 1969.
3. The Hospital, in March 1991, made an offer directly to
the nurses of a salary increase and a pension scheme (details
supplied). These offers were rejected by the organisation, as
was an earlier offer of a sick pay scheme (details supplied).
The Hospital pleaded an inability to offer any further
improvements in wages and conditions because of its financial
difficulties (details supplied). Agreement was reached on the
sick pay scheme and the issuing of contracts to the nurses at
the Labour Court investigation which was held in Wexford on
8th April, 1992.
ORGANISATION'S ARGUMENTS
3. 1. The Organisation has been seeking public service rates
and conditions of employment (details supplied) for the
workers since 1990. Very little progress has been made on the
claim. The Organisation is cognisant of the commercial
realities of hospital operation but it is only seeking
standard professional payments and conditions of employment.
Present salary scales are 35% below nationally agreed scales.
The Hospital requires qualified nursing personnel to provide
its range of acute and long stay services. To do this, proper
salary scales and conditions of employment must apply as they
do in similar private hospitals (details supplied).
2. The duties and responsibilities of nurses in the
Hospital are exactly the same as in any other hospital
providing a range of services. The Organisation acknowledges
that it may not be possible to introduce the proper scales
immediately but the scales must be standardised over an agreed
period. Substantial progress must be made immediately to
address the long standing grievances of the nurses. Nurses
should receive average pay and conditions as befits a modern
progressive medical institution such as the Hospital.
HOSPITAL'S ARGUMENTS:
4. 1. The Hospital made losses of £40,000 in 1990 and £26,000
in 1991. The reduction of the loss in 1991 was brought about
by the closure of 14 beds. Although medical/surgical patients
are generally covered by the VHI, the payments by the VHI are
not adequate to maintain the level of services. Charges for
geriatric patients are governed by the charges of nursing
homes in the area. As nursing homes are only required to have
one trained nurse on the premises, it is difficult for the
Hospital to compete on costs.
2. As the Hospital is private, it does not have access to
the same level of funding as health board or voluntary
hospitals. Fees earned are well below what it takes to run
the Hospital. The Hospital has remained in operation only
because of funding directly from the St. John of God Order.
This funding cannot continue unless the Hospital reaches a
viable level of operation. Concession of the claim, which is
outside the terms of the Programme for Economic and Social
Progress (PESP), will mean the phasing out and closure of the
Hospital as it will become non-viable. The offer made to the
nursing staff (details supplied) represents the best possible
that can be afforded.
RECOMMENDATION:
5. The Court notes that this claim seeks to change an historical
situation in which the claimants have had pay and conditions which
are considerably less than those agreed nationally for similarly
qualified staff in the Health Boards. The claim is being
presented now because the claimants were not organised or
represented by a Trade Union until 1990.
Having considered the lengthy written and oral submissions made by
the parties, the Court is of the view that there is merit in the
Union claim. However, the financial position of the hospital is
such that an immediate concession of the claim could put the
continuation of the service in serious jeopardy. The Court,
therefore, considers it necessary to allow the hospital the
opportunity to review its cash-flow before it has to meet the full
impact of the claim.
Accordingly the Court makes the following recommendations for
implementation on a phased basis.
(1) RATES OF PAY:
The aggregate difference in existing pay rates plus
allowances between the Hospital and the Health Boards
should be eliminated over the period ending 1/5/94.
One third of the difference should be paid on 1st
November, 1992 a further third on 1st May, 1993 and the
balance on 1st May, 1994.
(2) GRADING STRUCTURES:
Ward sisters and theatre sisters should be recognised
and paid as in the Health Boards. The equalisation of
the rates and allowances should be implemented as in
(1) above.
(3) ANNUAL LEAVE PREMIUM:
The annual leave premium should be paid in the current
year and arrears of two years' premium should be paid -
one on 1/5/93 and one on 1/5/94.
(5) PENSION SCHEME:
The pension scheme as proposed by Management should be
introduced from 1st November, 1992.
(6) EMPLOYMENT CONTRACTS:
The Court has noted the agreement of the Hospital to
issue written contracts of employment.
~
Signed on behalf of the Labour Court
Kevin Heffernan
29th May, 1992 ----------------
J.F./U.S. Chairman
NOTE:
Enquiries concerning this Recommendation should be addressed to
Mr Jerome Forde, Court Secretary.