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Wage-setting Mechanisms

Dáil Éireann Debate, Tuesday - 28 November 2023

Tuesday, 28 November 2023

Questions (527)

Pauline Tully

Question:

527. Deputy Pauline Tully asked the Minister for Children, Equality, Disability, Integration and Youth the actions he has taken, or if he has plans to resolve pay parity issues for organisations that provide services under section 39 of the Health Act 2004; and the estimated cost of achieving pay parity issues for organisations that provide services under section 39 of the Health Act 2004. [52428/23]

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Written answers

The sustainability and stability of health and social care sectors are a concern for Government and we recognise the ability of voluntary organisations to pay their staff is highly dependent on state funding.

In recent months, the Department of Children, Equality, Disability, Integration and Youth and the Department of Health proactively engaged with a Workplace Relations Commission process to ensure the stability and sustainability of services for the benefit of those who rely on these essential services and the workers who are essential to providing quality services.

Following intensive talks, the parties to the process reached an agreement on funding for pay with Unions representing Section 39, Section 56 and Section 10 organisations.

The agreement reached committed to a significant increase of investment in the sectors amounting to an 8% increase in funding for pay in these organisations.

The agreement included a phasing of funding:

• 3% from 1 April 2023

• An additional 2% from 1 November 2023

• And a further 3% from 1 March 2024

On 22 November unions informed the Departments that their members in the organisations balloted - amounting to approx. 5,000 working across a variety of organisations -  voted overwhelmingly to accept the agreement. It was backed by 88% of INMO members who voted, 94% of SIPTU members and 75% of Fórsa members.

As part of the agreement Departments have also committed to further talks after any future public sector agreement.

As always, the needs of service users were central considerations in the decision to increase exchequer funding to these service providers.

While Government has engaged in this process and an agreement has been reached, it is worth noting that Section 39 and Section 56 organisations are not public bodies, and the terms and conditions of employment for staff in these organisations are ultimately between the employer and the employee. 

The Departments are aware that staff employed across the hundreds of funded organisations have been employed using a multiplicity of terms and conditions, including different rates of remuneration and are dependent on Government for funding. For this reason, the Departments are not in a position to estimate the potential cost of pay parity. 

This agreement recognises the important role staff working in these voluntary organisations provide and provides certainty to organisations, staff and the people who rely upon them to provide essential services.

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