I move amendment No. 1:
To delete all words after "That" and substitute the following:
Dáil Éireann:
–acknowledging that the Government has accepted Labour Court recommendation No. 16261 of 31 August 1999 on nurses' pay and allowance claims;
–noting that the Labour Court itself has stated that recommendation No. 16261 is ‘the culmination of many years of discussions and negotiations on nurses' pay and conditions';
–recognising that the Government is committed to implementing the recommendations of the report of the Commission on Nursing, which are designed to address the underlying problems within the profession and develop nursing as a key profession within the health services;
calls on the four nursing unions to call off the threatened all-out nurses strike and to pursue their case in the context of forthcoming discussions between the Government and the social partners on a new national programme to succeed Partnership 2000.
I welcome this opportunity to set out in clear and unambiguous terms the position of the Government on nurses' pay and, in particular, to reiterate our determination to protect social partnership.
Social partnership has delivered major benefits. For this country, it has been a winning formula, and there is no reason to believe that it cannot continue to do so. It has provided the framework within which economic and social goals can be agreed and achieved. The benefits we now enjoy through high levels of employment, low inflation and reduced taxation did not happen by accident. By co-joining the partners in setting overall goals for ourselves, we have empowered people to have a greater say in shaping their own destiny and a greater interest in maintaining the conditions which will make it possible to achieve these goals. Because it is a winner in so many ways, the Government is acting in accordance with the wishes of the vast majority of the people in seeking to protect social partnership and to deal with challenges which may be posed to its continuation and development.
The success which social partnership has enabled us to achieve is not confined to the economic sector. In the social area, including health and social services, significantly increased resources have been targeted at areas of need, most of them the subject of prior agreement among the social partners. While there are still and always will be some unmet needs, very considerable progress has been made by successive Governments in addressing the needs of the eld erly and disabled, the handicapped, children and other groups in need of special care and support.
The overall numbers employed in our health services are now at an all time high, including the number of nurses employed. Social partnership and its fruits have given us the confidence to embark on long-term strategies to tackle the main causes of sickness and death: cancer and cardiovascular disease. There is scarcely an area of the services that is not enjoying a period of development.
Social partnership has also helped develop the attitudes and structures through which we can plan and implement real change. We have seen that it is possible to bring about planned changes in our society. The nursing profession has, particularly over the past five years, embarked on an agenda for change. The conditions and structures which have evolved out of social partnership have helped the profession to make considerable progress in advancing that agenda and laying the foundations for the further development of nursing. The range and scope of the recommendations of the Commission on Nursing could scarcely be contemplated in the days prior to social partnership and it is a certainty that no Government could, at that time, have so readily agreed to fully fund their implementation.
Outside social partnership, it is difficult to envisage how we could find a formula through which we can, in a controlled way, break out of an iron circle of pay relativities in the public sector and agree a basis on which reward is more closely linked to contribution and performance. Within the social partnership framework, we have found better ways of planning for the future, sharing the fruits of success and settling disputes. Our structures have been designed to settle disputes without causing hardship or inconvenience to the wider community. Most people, including Members of this House, would agree that invoking the strike weapon within a social partnership context represents an attack on an edifice which has been painstakingly constructed by people from all sectors of society. It is within that edifice, rather than outside it, that each group can best advance its agenda, provided that others accept the justification for their advancement. It is against this background, therefore, that the Government must stand firm in this dispute, which is not of its making.
The history of nurses' pay talks is a long one, punctuated by a series of offers followed by rejection. In order to provide a context for the situation now confronting us, it is necessary to go back to 1994. Discussions with the Nursing Alliance under the PCW restructuring clause commenced in late 1994, when management offered nurses a down payment of 1 per cent, effective from 1 April of that year, the same as had been offered to other public sector groups. This was accepted by the nursing unions who then broke off talks to consider progress. Talks resumed in February 1996, during which management tabled a conditional offer of £20 million. This offer was rejected following a ballot by nurses. In March 1996, following intervention by the Irish Congress of Trade Unions, talks took place at the Labour Relations Commission, which resulted in agreement on a set of proposals costing £33.5 million. This enhanced offer was rejected by the Nursing Alliance following a ballot.
Direct discussions between management and the nursing unions were resumed in June 1996. The nurses' pay issue was subsequently referred to an independent arbitration board established by the Government and the Congress of Trade Unions to hear outstanding pay disputes. This adjudication board recommended a package worth some £50 million to nurses. This package was accepted by SIPTU and the PNA, but rejected by the INO and IMPACT. Strike notice was then served to expire on 10 February 1997. The Labour Court then intervened and on 7 February 1997 issued a recommendation containing a package costing £85 million. This was accepted by nurses on the basis that a commission on nursing would be established to examine and report on the role of nurses in the health services.
The Labour Court finding of February 1997 provided for special pay increases of up to 17 per cent for the grades of staff nurse and ward sister, with similar level increases for other grades. These increases were substantially in excess of the 5.5 per cent cap on restructuring deals under the PCW agreed by the then rainbow coalition Government and the Irish Congress of Trade Unions. The Labour Court justified the award of such large pay increases to nurses on the basis that their pay scales, to quote directly from the court's recommendation: "have fallen significantly behind other groups". This statement clearly demonstrates that the Labour Court regarded nurses as a special case deserving a special pay award.
I would like to highlight one particular aspect of the court's finding relating to long-service increments at that time. The adjudication board had recommended a salary scale for staff nurses with two long-service increments. The Labour Court subsumed those two increments into a new ten-point salary scale for staff nurses and added a new long-service increment to the new scale. I am left wondering to what extent staff nurses were made aware that long-service increments had been conceded to them at that stage.
The Commission on Nursing was established in March 1997. Its membership included representatives of the four nursing unions. Seven of the 14 ordinary members of the commission were drawn from the nursing profession. The commission's final report, entitled A Blueprint for the Future, was formally presented to me in September 1998. At the launch of the report, I announced, on behalf of the Government, that it had accepted the broad thrust of the report and that it was committed to implementing its recommendations. That remains our position.
The Commission on Nursing made some 200 recommendations for tackling the underlying problems within the profession and developing nursing as a key profession within the health services. While only three of its recommendations related to pay, these have overshadowed everything else since the report was published.
There has been a good deal of misrepresentation about what the commission recommended on the three pay-related issues. In order to set the record straight as to what it recommended, I want to quote verbatim from the relevant sections of the report. Paragraph 6.64 of the report states: "The Commission recommends that the question of additional recognition of long service for staff nurses be examined through the established structures." Paragraph 6.66 states: "The Commission recommends that outstanding claims for allowances should be referred to the Labour Court for argument and determination as a matter of urgency." Paragraph 7.50 states:
The Commission recommends that differentials and incremental annual leave in promotional grades be examined as a matter of urgency, before the end of December 1998, through the established structures. To this examination should be added the effect of the enhanced role for ward sisters and higher grades which has been recommended by the Commission earlier in this chapter.
The fundamental fact that needs to be emphasised here is that the Commission on Nursing did not recommend that staff nurses should be given additional long service increments.
Following the publication of the Commission on Nursing report, there were three residual pay-related issues to be addressed. These were referred to the Labour Court for determination. On 9 February 1999, the Labour Court issued two recommendations covering all three pay issues. The court awarded significant improvements in existing allowances for nurses working in specialised areas and who hold special qualifications – allowances were to be increased from £333 to £1,000 where nurses work in a specialist area, and to £1,500 where they have a specialist qualification. Thousands of staff nurses and a significant number of ward sisters stand to benefit from this increase. This finding was accepted by the Government on 10 February 1999.
Part of the claim lodged with the Labour Court by the Nursing Alliance was for three additional long service increments – each of 6 per cent – for staff nurses. This claim was rejected by the Labour Court on the grounds that, to quote directly from the court's recommendation, "The pay scales for staff nurses were addressed in Labour Court Recommendation No. 15450." That was the February 1997 award, which gave staff nurses a special increase of up to 17 per cent.
In relation to the third pay-related issue, that of differentials, the Labour Court, while accepting that there were grounds for salary increases in promotion grades, believed that these must be based on negotiation and implementation of the Commission on Nursing report, which had not yet been discussed by the parties. Accordingly, the court established a negotiating process to address the implementation of the commission's report. While some progress was made in direct discussions between the management and union sides, there was no agreement on pay and the matter was referred back to the court.
The Labour Court issued its final determination on the nurses' pay issue on 31 August last. The court's package included an average increase of about 10 per cent for ward sisters and higher grades; a lump sum payment of £1,250 for every nurse employed in the public health services, conditional on acceptance of the Labour Court recommendation; additional annual leave for all nurses linked to service, up to three days for staff nurses and up to four days for ward sisters and higher grades; a personal allowance payable on a red circle basis to serving nurses in certain grades to compensate for the apparent loss of existing differentials under the proposed pay structures; and an interim award of 4 per cent to nurse tutors pending the report of the Nursing Education Forum.
In its summary, the Labour Court states that its recommendation "is the culmination of many years of discussions and negotiations on nurses' pay and conditions." The court goes on to say that it "believes that the package now proposed, in addition to the concessions already received on pay, conditions and allowances, represents significant improvements in the financial package for nurses." It also points out that the "issue of nurses' pay and conditions has taken up more of the court's time in recent years than any other issue." It is vital to highlight these salient comments made by the Labour Court in order to counteract the suggestions made in some quarters that the court did not understand fully the issues involved and that its finding was less than favourable to nurses.
The fact is that the value of the final package produced by the court is more than three times what the HSEA tabled in direct discussions with the Nursing Alliance. Moreover, the Labour Court did not exclude staff nurses from its final determination, notwithstanding its earlier ruling that their pay scales had been addressed in February 1997. The lump sum payment and the additional annual leave, taken in conjunction with the significant increase in allowances awarded by the court earlier this year, ensures that staff nurses stand to gain as well as other nursing grades.
Within 24 hours of the Labour Court issuing its finding, I brought the finding before the Government which accepted it on the basis that it brought to an end a protracted negotiating process on nurses' pay going back to 1994. Within days, three of the four nursing unions had decided to recommend rejection of the finding to their members. Having insisted on the three residual pay-related issues going before the Labour Court and having had those issues fully considered by the court, it seems the union leadership then had a change of heart. Not only were they recommending rejection of the Labour Court finding, but the Irish Nurses Organsiation then started looking for parity with paramedic grades in the health services, while the Psychiatric Nurses Association have been talking about parity with teachers. Neither of these aspirations, however, formed the basis of their claim before the Labour Court. At the February 1997 Labour Court hearings, the Nursing Alliance sought to link the pay of staff nurses with that of the Grade Vs in the health services, which is a supervisory-administrative function. Moving the goal posts like this is a totally unacceptable way of conducting industrial relations business. They want to negotiate, in effect, another new claim, having rejected the arbitration finding in respect of the claim they argued for four years on a totally different basis.
I have been portrayed as having being opposed to negotiations. The issue of nurses' pay has been four years in the negotiating process. I have spent more time on industrial relations issues relating to nursing since I became Minister than on any other industrial relations matter.
The Government's approach to the nurses' pay issue and the threat of an all-out strike is correct and responsible. It is consistent with the position taken by the rainbow coalition Government in 1996. It is a pity, however, that some of the Opposition Deputies seem to be suffering from selective amnesia. Deputy Noonan, in replying to an Adjournment Debate on nurses' pay in this House on 26 November 1996 when he was Minister for Health, made the following statement:
I would obviously be deeply concerned at the impact of strike action on the health service and on patients in its care. It is also clear that an industrial action of the type now apparently being contemplated by the NIO could have serious ramifications for the prospects of any new pay agreement based on social partnership. For these reasons, I would again appeal to the leadership of the Irish Nurses Organisation, and the other nursing unions, with the assistance of ICTU, to reconsider their strategy and to adopt an approach in keeping with the partnership model of industrial relations.