Dáil Éireann Debate, Thursday - 23 October 2014
170. Deputy Michael Healy-Rae asked the Minister for the Environment, Community and Local Government if he will provide the details of the number of employees of Irish Water who will receive bonuses in 2015; and if he will make a statement on the matter. [40784/14]
View answer178. Deputy Terence Flanagan asked the Minister for the Environment, Community and Local Government if he will abolish bonuses being paid to Irish Water staff of up to 19%; and if he will make a statement on the matter. [40821/14]
View answerI propose to take Questions Nos. 170 and 178 together.
Since 1 January 2014, Irish Water has statutory responsibility for all aspects of water services planning, delivery and operation at national, regional and local levels.
The employment terms and conditions for Irish Water staff are a matter for the company and I understand that the particular pay model is something which was inherited from the parent company Ervia and therefore was not directly put in place by Irish Water. Like other commercial semi-state bodies, pay models are negotiated between management and unions and are then subject to a ballot as necessary. This occurred in Ervia’s case and the pay model was implemented in 2011.
This involves a competitive market based pay model, which offers market based pay ranges for all employees, including a pay at risk element called Performance Related Award (PRA). A pay freeze will remain in place until 2016 as this is a key element of reducing overall payroll costs within the Group. As such, Irish Water does not pay increments or any form of automatic pay award; the pay model applied allows for part of salaries to be placed at risk and this element of pay is only earned subject to performance. Every individual in Irish Water has a clear set of objectives set for the year and a set of metrics against which performance is measured.
Irish Water has indicated to my Department that the maximum PRA element of pay ranges from 2.75% to 15%. While I understand that the Ervia pay model allows for a further 4% performance-related award to be made in circumstances of exceptional performance, entirely at the discretion of the Board, I am assured by Ervia that the maximum percentages to be applied in Irish Water will be as set out in the range provided above. Furthermore, no decision has been made in relation to the payment of any PRAs in Irish Water at this time.
The Government will shortly consider proposals to establish a unified board arrangement for Ervia and Irish Water. One of the first actions that I will be asking the new Board to take will be to review the application and operation of the pay model outlined above in Irish Water, particularly in its start-up phase.
Irish Water has established a dedicated team to deal with representations and queries from public representatives. They may be contacted via email at oireachtasmembers@water.ie or by telephone on 1890 278 278.
