Key points of new pay deal

The Minister for Public Expenditure and Reform, Mr. Brendan Howlin has welcomed the recommendations put forward by the Labour Relations Commission.

The Minister for Public Expenditure and Reform, Mr. Brendan Howlin has welcomed the recommendations put forward by the Labour Relations Commission.

BY Jamie Hanlon, Accountant

.

Each Union must now put these proposals to their members and the Minister is confident that based on the requirement for these balanced measures, they will be accepted by public servants.

Here is a summary of the Proposals for Public Service Agreement issued by the LRC which has yet to be proposed by the Unions to their members: 3 year agreement to run from 1 July 2013 to end June 2016

Over the course of the Agreement, the overall savings target set by Government will be achieved.

Remaining overtime costs will be paid at a reduced rate - Time and half at the first point of the scale for those on less than €35k. Time and a quarter at the individual’s scale point for those over €35k. Those public servants currently on 39 hours will provide an unpaid hour’s overtime.

Elimination of Twilight payments and reduced rate of time and three quarters for Sunday pay.

Increment freeze of varying lengths: A 3 year freeze for those over €65k, two 3-month freezes (i.e. two 15 month increments) for those between €35k and €65k and a single 3 month freeze for those under €35k (i.e. a 15-month rather than 12 month increment). Balancing measures for those already at the max. of their scales have also been agreed, either a reduction in annual leave of a total of 6 days over the Agreement or a cash deduction from salary of an equivalent amount or the value of half of the last increment, whichever is the lesser.

Separately, the Government will reduce the pay of those over €65k progressively as follows:

5.5% on the first €80,000 of salary and allowances

8% between €80,000 and €150,000

9% between €150,000 and €185,000

10% above €185,000

Elimination of Supervision and Substitution payments in the education sector.

There are a range of additional savings associated with this Agreement including in certain sectors; public service pensions etc.

A modest amelioration of the Pension Related Deduction has been included as part of the Agreement. It is agreed to reduce the €15,000-€20,000 band rate to 2.5% from 5%.

A series of long-term work place reforms have also been agreed as part of this deal. These include

Revisions to flexitime arrangements and work sharing patterns

Revisions to redeployment provision

Strengthened performance management arrangements

Proposals in the area of grade restructuring

The above measures will need to be underpinned by legislation.

As always, should you have any queries as to how these proposals put forward by the LRC may effect you, please contact me.

Avid Partners - Accountants & Business Advisers would like to acknowledge the kind contribution of South Dublin Chamber of Commerce.

Jamie O’Hanlon

Avid Partners - Accountants & Business Advisers, Portlaoise. Jamie is a fellow of The Association of Certified Chartered Accountants.