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| Paul McGennis, Managing Partner and Gary Byrne, outgoing Managing Partner of BCM Hanby Wallace Solicitors, in October 2006. |
The outcome of the current dispute over the working hours and pay rates for nurses could impact on companies in the private sector according to a leading employment law expert.
Speaking at a special conference onEmployment Law held today in Dublin, Gary Byrne - a Partner at BCM Hanby Wallace solicitors - said "Irish employers are increasingly losing the power to set employment terms and conditions for their workforce. The Labour Court is now having a major input on private sector contracts of employment, and in certain cases, has determined that private sector employees must receive the same rewards as those working in a similar category of employment in the public sector."
The result of such findings by the Labour Court has "effectively removed the ability of employers in the private sector to manage key costs. This could reduce the attractiveness of Ireland as a place to do business."
Byrne highlighted a recent recommendation of the Labour Court which found that the Galway Medical Clinic, a private medical facility in Co Galway, had to ensure that all staff "should be placed on a pay scale equivalent to that applicable to corresponding grades in the Public Health Service."
Byrne said that this decision effectively removed the clinic's ability to manage its business in relation to the terms of employment of its staff, and could set a precedent for other private sector workers who are working in an industry comparative to a public sector industry.
Byrne warned: "The outcome of the nurses' dispute could therefore automatically apply to health professionals working in private sector health facilities. If the determination in the Galway Clinic case was repeated it would suggest that there would be higher costs for service providers and inevitably higher health insurance premiums."
Byrne said: "The Labour Court is an essential tool which ensures fairness in employment and protects employers and employees. However, should we see a move by the Labour Court to extend public sector terms of employment to the private sector, we could see a marked decrease in competitiveness, making Ireland a less attractive location for foreign direct investment and Irish indigenous companies. The consequences would be felt in every industry and in every county in Ireland."
RELATED
Charlie McCreevy, TD, Minister for Finance, announced on 19 July 2000, the formal establishment of a Public Service Benchmarking Body as provided for under the Programme for Prosperity and Fairness (PPF) to undertake a fundamental examination of the pay of public service employees vis-a-vis the private sector.
The exercise was a complete sham as the premise that comparable grades in the public sector were under paid compared with counterparts in the private sector, was generally known to be false.
Pension coverage was not included in the comparisons and a final report was never published. Nevertheless, Ministers got two benchmarking payments and every retired civil servant, was also given a special payment.
Now, we have so-called benchmarking, in reverse.
