HSE warning on third sector pay cuts 'a mistake'
Health chiefs made a mistake ordering voluntary agencies and charities to enforce pay cuts among their workers, the Government claimed today.
The Health Service Executive (HSE) issued so-called early warning notices to organisations that it financially backs, insisting they would have to suffer the same wage reductions as public sector employees.
Labour leader Eamon Gilmore challenged Taoiseach Brian Cowen about the legality of the move last week.
His party accused the Government of trying to extend public sector pay cuts by stealth and claimed thousands of low-paid workers in community and voluntary organisations would have been hit by the cuts.
But Tánaiste Mary Coughlan today said HSE chief executive Brendan Drumm told the Government the circulars were a mistake.
“The HSE has advised that the circular was sent in error, and that Professor Drumm has in fact issued a clarification to those people in this regard,” she said.
Ms Coughlan said the early warning notice was sent to grant-aided voluntary agencies and incorrectly claimed pay cuts for public servants would automatically apply to them.
In fact, under the legislation – the Financial Emergency Measures in the Public Interest Act – the agencies are exempt from the salary reductions.
“As they are not public service bodies as defined in that Act, their employees are not public servants,” Ms Coughlan said.
The Tanaiste said all employees who were told they would be hit by the pay cut have been given “absolute clarity” on the matter by the HSE.
The proposed wage cut sparked fears that workers in voluntary groups and community projects, including childcare and youth groups, would join industrial action by the public sector.
Separately, Ms Coughlan confirmed Government plans to allow agriculture, retail, catering, hotel and retail bosses to pay workers less than the minimum wage.
An “inability to pay” clause already exists but has never been used and is confined to certain industries.
Under the proposals, the clause will be extended to other sectors governed by separate Registered Employment Agreements (REAs).
This will allow previously exempt bosses to apply to the Labour Court to be allowed pay less than the national minimum of €8.65.
Ms Coughlan insisted the move would save jobs.
