FULL RECOMMENDATION
INDUSTRIAL RELATIONS ACTS, 1946 TO 1990 SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : HOSPITALLER ORDER OF ST. JOHN OF GOD (REPRESENTED BY THE HEALTH SERVICE EMPLOYERS AGENCY) - AND - IRISH HOSPITAL CONSULTANTS' ASSOCIATION DIVISION : Chairman: Mr Flood Employer Member: Mr Pierce Worker Member: Mr Rorke |
1. (1) Compensation for loss of private practice.
(2) Compensation for accumulated rest days.
BACKGROUND:
2. Report No. 36 of the Review Body on Higher Remuneration in the Public Sector (the 'Buckley' Report) was released in December, 1996. It recommended revised salaries for hospital consultants subject to their acceptance of changes in their terms and conditions of employment.
National negotiations with the Irish Medical Organisation (IMO) and the Irish Hospital Consultants' Association (IHCA) concluded on the 11th of November, 1997, with an agreement on a revised consultant's contract. The IHCA then commenced negotiations in 1998 with the Order of St. John of God on a number of outstanding issues. The Association claims that the Order exerted pressure on the individual consultants to sign the contracts by the 3rd of July, 1998, although the negotiations were incomplete. A number of consultants signed the contracts in July, September, and December, 1998. There are now only two consultants who have not signed the revised contracts.
The dispute was the subject of a conciliation conference under the auspices of the Labour Relations Commission on the 14th of December, 1998. Agreement could not be reached on the issues of compensation for loss of private practice and compensation for accumulated rest days. Under the 1992 Gleeson contract compensation for the loss of private in-patient income was to be paid as follows:-
- Consultants in Cluain Mhuire Child and Family Centre
- an additional payment of one session per annum plus £2,000 per consultant for ongoing education and development
Consultants in the Lucena Clinic- an additional payment of one session per annum.
Consultants who signed the Buckley contract received payment of one extra session in lieu of the £2,000 payment. The Buckley contract also states that a maximum of 250 accumulated rest days may be taken as one year's paid leave immediately prior to retirement. This is to be in full and final settlement of any claim for compensation in respect of accumulated rest days.
These issues were referred to the Labour Court on the 20th of January, 1999, in accordance with Section 26(1) of the Industrial Relations Act, 1990. The Court investigated the dispute on the 27th of April, 1999, the earliest date suitable to the parties.
ASSOCIATION'S ARGUMENTS:
Compensation for accumulated rest days:
3. 1. One consultant, Dr. B., who has refused to sign the revised Buckley contract has accumulated 1,452 rest days since 1981. The Order was fully aware that the days were accumulating and has admitted its liability in writing.
2. The Order's liability could be met by allowing him time off and employing a locum in his absence, by reaching a financial settlement or by a combination of time off and financial compensation.
3. A second consultant, Dr. R., has accumulated 310 rest days. His claim is to take 250 days as paid leave before retirement as provided for in the Buckley agreement and the remaining 60 days immediately prior to this.
4. In the recent past the Order has paid compensation to a number of its consultants in lieu of untaken rest days. The Association is also aware of local agreements reached with other employers to compensate consultants who had accumulated more than 250 rest days.
Compensation for loss of private practice:
5. Both the Gleeson and Buckley contracts preclude consultants from charging professional fees to private in-patients treated in Stillorgan. Since 1992 the Association has been unhappy with the agreed formula for compensation and served notice then of its intention to pursue the matter further at the next round of negotiations.
6. Approximately 1.35 million people are insured with the VHI. Since 1992 VHI payments to consultants have increased from £36.4 million to approximately £81 million in 1998. This increase in payments to consultants should be reflected in a more favourable arrangement for the four consultants named in the Association's submission.
7. The Association proposes that compensation should continue to be calculated on a sessional basis as follows:-
- Increase from 2 sessions to 4 sessions for Dr. B.,
- Increase from 1 session to 2 sessions for the other named consultants.
These increased payments to apply retrospectively from 1st January, 1998.
ORDER'S ARGUMENTS:
Compensation for accumulated rest days:
4. 1. It was agreed by all parties to the national negotiations in 1997 to address historic rest days 'for once and for all time'. The maximum provisions available to consultants were agreed as a maximum of 250 days time off immediately prior to retirement. These provisions are only available to consultants who accept the revised contract.
2. The claims in respect of Dr. B. and Dr. R. are in excess of the maximum available under the revised contract. Any concessions would have implications both for the Order and at national level for all employing authorities.
3. The Department of Health and Children has formally confirmed that it will not approve or fund arrangements which are contrary to the agreed provisions of the consultants contract.
4. If Dr. B. signs the revised contract the Order will endeavour to look at his claim and will try to deal with part of it by changing his rota, possibly from 1:1 to 1:4. Partial funding may also be possible. However, no commitment or guarantee can be given.
Compensation for loss of private practice:
5. Agreement was reached in 1992 with the IHCA to compensate consultants in the Cluain Mhuire Service in lieu of private in-patient fees. The Hospital's contract with the VHI is for an all-inclusive payment in respect of services to private in-patients. This payment is insufficient to meet the full economic cost of patient care.
6. The average number of private patients referred through the Cluain Mhuire Service has declined since 1995. The Hospital has incurred operational losses in 1996, 1997 and 1998 and does not have the resources to meet any additional costs associated with this claim.
7. There is no economic basis for any increase in compensation and existing arrangements are already quite generous. It is considered that Dr. B. is the only claimant as the other four consultants in the Cluain Mhuire Service have signed their contracts. However, any concession to Dr. B. would risk similar demands from the other consultants.
RECOMMENDATION:
The Court, having considered the written and oral submissions made by the parties, finds as follows on the issues in dispute:-
1.Compensation for accumulated rest days:
The Court is satisfied that the formula agreed in the Buckley negotiations in 1997 to deal with accumulated rest days was put in place in the knowledge that some personnel would have significant accumulated rest days.
The Court does not recommend that the cases before it should be treated outside this arrangement and, therefore, does not recommend concession of the claim.
However, the Court notes the Order's offer to examine one case in particular circumstances and recommends that the parties explore this option.
2.Compensation for loss of private practice:
The Court finds the Employer's proposal on this issue to be reasonable and recommends its acceptance.
Signed on behalf of the Labour Court
Finbarr Flood
10th May, 1999______________________
D.G./D.T.Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Dympna Greene, Court Secretary.