FULL RECOMMENDATION
SECTION 26(1), INDUSTRIAL RELATIONS ACT, 1990 PARTIES : COBH COMMUNITY HOSPITAL (REPRESENTED BY IRISH BUSINESS AND EMPLOYERS' CONFEDERATION) - AND - SERVICES INDUSTRIAL PROFESSIONAL TECHNICAL UNION IRISH NURSES AND MIDWIVES ORGANISATION DIVISION : Chairman: Mr Haugh Employer Member: Mr Murphy Worker Member: Ms Tanham |
1. Pay restoration claim.
BACKGROUND:
2. This dispute could not be resolved at local level and was the subject of a Conciliation Conference under the auspices of the Workplace Relations Commission. As agreement was not reached, the dispute was referred to the Labour Court on the 14 November 2017 in accordance with Section 26(1) of the Industrial Relations Act, 1990.
A Labour Court hearing took place on the 7 March 2018.
UNIONS ARGUMENTS:
3. 1. Staff employed in the organisation were directly employed with the terms and conditions of employment applicable to their comparative grades within the HSE / Public Service.
2. Members have had reductions imposed on their salaries corresponding to those applied within the HSE / Public Service.
EMPLOYER'S ARGUMENTS:
4. 1. Funding has not been forthcoming from the HSE for increases due under pay restoration.
2. The organisation has continually sought to achieve funding increases from its funders but to date has been unable to secure funding.
RECOMMENDATION:
Cobh Community Hospital (“CCH”) is a registered charity that provides residential, respite and palliative care services for up to 44 residents. The within dispute relates to the rate at which approximately forty-four members of the INMO and SIPTU employed by CCH are remunerated.
The Unions (SIPTU and INMO) submit that the salaries of workers employed by CCH were historically aligned with the HSE consolidated pay scales and that cuts imposed on all public-sector workers under FEMPI legislation were applied to their members in that employment. The Unions are seeking payment to nursing and support staff grades employed by CCH of the accelerated pay restoration element of the Lansdowne Road – Public Service Stability Agreement 2014-2018 which was applied on 1 April 2017 to public sector (including HSE) employees earning up to €65,000.00 per annum.
CCH is a Section 39 Agency and provides services under a service level agreement with the HSE. Historically, the greater part of its funding was provided by the HSE. However, since 2008 as section 39 beds became vacant at CCH, they have been replaced by beds funded under the Fair Deal Scheme administered by the National Treatment Purchase Fund. CCH continues to be in receipt of – and heavily dependent on – an annual ancillary grant from the HSE. Nevertheless, the organisation incurred operating losses in 2014, 2016 and 2017. CCH submits that it has implemented a number of measures in an attempt to reduce its operating costs. It has also made attempts to secure increased funding. Nevertheless, at best it expects to break even in 2018. In such circumstances, it submits that it would be financially irresponsible of it to accede to the Unions’ request for pay increases as the HSE will not provide any additional funding to cover the cost of them.
Recommendation
The Court is mindful that the parties entered into the process that led to the within hearing in good faith and with a view to finding a resolution to the dispute between them. However, in the meantime, issues relating to the funding of section 39 organisations and the remuneration of staff employed by such organisations have become the subject of national-level discussions between the Health Service Executive and the Trade Unions. In the circumstances, the dispute between the parties has been superseded by those national-level discussions. The Court, therefore, recommends that the parties await the conclusion of the ongoing discussions at national level and, in the event that any matter related to the within dispute remains unresolved at the conclusion of that process, it can then be referred back to the Court.
The Court so recommends.
Signed on behalf of the Labour Court
Alan Haugh
LS______________________
27 March 2018Deputy Chairman
NOTE
Enquiries concerning this Recommendation should be addressed to Louise Shally, Court Secretary.