asked the Minister for Health in relation to the budget statement of 21 July 1981, as reported in columns 574 and 575 of the Official Report of Dáil Éireann, if any communication, direction or advice was addressed by her Department to any public or semi-State body or local authority, subsequent to that date; and, if so, if she 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.
503.
The following communication was addressed to health boards on 10 August 1981:
1. I am directed by the Minister for Health to enclose herewith an extract from the Minister for Finance's Budget statement of 21 July 1981 dealing with public sector pay. I am to ask you to ensure that Government policy on public sector pay as stated in this extract is complied with in your board.
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 it would be appreciated if you would ensure that they are complied with so far as your board is concerned.
4. Where this Department gave approvals to your board to offer pay increases or improvements in conditions before the Budget statement on 21 July 1981 such approvals may be honoured. If the increases or improvements were not offered to claimants before the Budget statement it should be made clear that the offers were approved prior to the Budget.
5. Firm offers or formal commitments made before 21 July, 1981 may be honoured. It is the Government's intention that a restrictive view should be taken of what constitutes a firm offer or formal commitment. 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. All such Labour Court or Right Commissioners' recommendations should be referred to this Department for consideration.
7. In all cases other than the exceptions mentioned above, 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 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 sees 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.
8. The Minister for the Public Service in consultation with other Ministers will be concerned to ensure that Government pay policy is applied consistently throughout the public sector. To enable him to monitor the situation I should be glad if you would forward as soon as possible details of claims extant in your board 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.
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 this Department for consideration.
Similar letters were sent to public voluntary hospitals; homes for the mentally handicapped and other health agencies.
504.
asked the Minister for the Public Service in relation to the budget statement of 21 July, 1981, as reported in columns 574 and 575 of the Official Report of Dáil Éireann, if 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.
Officials of my Department have regular, confidential consultations, together with officials from other Departments, with the management of State bodies in relation to the implications for individual bodies of Government policy in the areas affecting their operations. It would not be appropriate that I should divulge the details of such consultations. In the wake of the Financial Statement of 21 July 1981, however, general guidelines were issued to State and local bodies in regard to the implementation of the policy on public sector pay announced in the statement. The text of the letter I sent to the Institute of Public Administration, the only agency under the aegis of my Department, is as follows:—
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 should be grateful if you would ensure that they are complied with so far as your organisation is concerned.
4. Where my Department gave approvals to your organisation to offer pay increases or improvements in conditions before the Budget statement on 21 July 1981 such approvals may be honoured. If the increases or improvements were not offered to claimants before the Budget statement it should be made clear that the offers were approved prior to the Budget.
5. Firm offers or formal commitments made before 21 July 1981 may be honoured. It is the Government's intention that a restrictive view should be taken of what constitutes a firm offer or formal commitment. 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. All such Labour Court or Rights Commissioners' recommendations should be referred to my Department for consideration.
7. In all cases other than the exceptions mentioned above, 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 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 sees 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 the 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. I will be concerned to ensure that Government pay policy is applied consistently throughout the public sector. To enable me to monitor the situation I should be glad if you would send me as soon as possible details of claims 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. 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 and your Board 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.