Embattled Irish Water will not pay staff any bonuses for this year or last because of a lack of public confidence in it.
In the latest twist in the calamitous introduction of a tap tax, bosses have said they will freeze controversial top-up payments ahead of an independent investigation into salaries.
Senior staff were in line to pocket annual bonus payments of up to 19% as part of a contentious “reward” scheme.
Under the bonus plan, even workers who are deemed to be underperforming – or who “need improvement” – are entitled to top-ups amounting to as much as 9% of their yearly salary.
Just weeks ago management at Irish Water defended the payments.
But amid mounting protests over the new levy, and ahead of the Government’s announcement on revised charges, Irish Water confirmed it would not be paying the bonuses for the past two years.
“The decision reflects the fact that at the end of 2014 Irish Water has not yet earned sufficient public confidence,” a spokeswoman said.
“We made this decision in the best interests of Irish Water and the wider Ervia group to show we are listening to the public.”
Ervia is Irish Water’s parent company, formerly known as Bord Gáis.
The semi-state commercial organisation said it has begun an “independent review” of the pay model in Irish Water.
“This review will recommend an appropriate pay model that will be applied in the future,” the spokeswoman added.
“The new Ervia board and the Government (as shareholder) will be asked to approve any pay model before it is implemented for Irish Water.”