asked the Minister for the Environment if in relation to the budget statement on 21 July 1981, as reported in columns 574 and 575 of the Official Report of Dáil Éireann, any communication, direction or advice was addressed by his Department to any public or semi-State body or local authority, subsequent to that date; and, if so, if he will give details of any such communication etc., which would affect the conduct of free collective bargaining by the employer concerned or the conduct of industrial relations.
Written Answers. - Public Sector Pay.
501.
On the 7 August I wrote to each city and county manager and to each semi-State body for which my Department have responsibility drawing attention to the terms of the budget statement of the Minister for Finance in so far as it applied to public sector pay and asking them to ensure that the policy referred to is complied with in their authorities. With the permission of the Ceann Comhairle, I propose to circulate copies of the letters in question with the Official Report. There has also been correspondence between my Department and a number of individual local authorities and bodies about the application of the policy in particular cases.
Following is the correspondence referred to:
7 August, 1981.
Dear Chairman,
1. I attach an extract from the Minister for Finance's Budget statement of 21 July 1981 dealing with public sector pay. I would ask you to ensure that Government policy on public sector pay as stated in this extract is complied with in your organisation.
2. In order to ensure equality of treatment for all cases it is essential that all public sector employers pursue a co-ordinated and consistent pay policy. It would be most unfortunate if the policy were implemented in such a way as to allow a group of workers in one area to benefit from an increase while a similar group in another area with an equally strong case were prevented from doing so.
3. Paragraphs 4-8 following indicate how the Budget statement is to be implemented and I would be grateful if you would ensure that they are complied with in so far as your organisation is concerned.
4. Where my Department gave approval for pay increases or improvements in conditions before the Budget statement on 21 July 1981 such approvals may be honoured. If in any case such increases or improvements were not actually offered before the Budget statement, it should be made clear to the staff interests involved that the Department's sanction had in fact been given prior to the Budget.
5. It should be noted that it is the Government's intention that a restrictive view should be taken of what constitutes a firm offer or formal commitment, as referred to in the Minister of Finance's statement. In this regard, it should be noted that existing links and relationships do not in themselves constitute a formal commitment and should not be so construed.
6. The expression "cases currently before the Labour Court" covers only those claims which were referred to the Labour Court for a recommendation before the Budget statement. It does not cover claims at the conciliation stage. In accordance with the established practice, all such Labour Court or Rights Commissioners' recommendations should be referred to my Department for consideration before any offers or commitments are made by your organisation in respect thereof.
7. In all cases other than the exceptions mentioned above, it is the intention that claims for pay increases or improvements in conditions on whatever basis they are made should be rejected. Claims where the merits are weak should be rejected on that basis, with the rider that if they are submitted for adjudication (eg. to the Labour Court or Arbitration) the management side will also invoke the terms of clause 6 of the National Understanding 1980. Claims with merit should be discussed but no offers should be made nor should management indicate the extent to which it saw merit in the claim. Instead the terms of clause 6 should be invoked at the conciliation stage. Any alternative arrangement proposed under that clause must take full account of the fact that no further funds will be available to meet the cost of special pay increases. Even if your organisation could in fact meet a claim from its own revenue the terms of clause 6 should still be invoked with management stressing the risk to jobs generally and the damaging effects on the viability of the economy if claims are conceded in the public sector other than the exceptional ones specified in the Budget Statement.
8. To ensure that Government pay policy is applied consistently throughout the public sector and to enable the situation to be monitored I should be glad if you would send me as soon as possible details of claims, if any, extant in your organisation on 21 July 1981 in the form set out in the Appendix to this letter. If further claims are received after 21 July similar details should be supplied.
9. I feel I cannot stress too strongly the need for Government policy on pay to be observed consistently throughout the public sector and I feel sure that I can rely on you to ensure that your organisation complies with Government policy as outlined in the Budget statement and in this letter. If any doubts arise about the status of a particular claim, offer or commitment or about other aspects of the new pay policy the matter should be referred, in writing, to my Department for consideration.
Yours sincerely,
Peter Barry
Minister for the Environment
Extract from the Budget Speech of the Minister for Finance.