LRC proposals issued last week have introduced an increment-based pay model at Irish Water on a temporary basis. Pay-related awards (PRAs) were suspended by Irish Water last year following a much publicised controversy that the pay model amounted to a ‘bonus culture’ at the water utility.
IMPACT assistant general secretary Johnny Fox explained, “Irish Water operates a pay and reward structure which moved away from the more traditional increment-based pay model to a market and performance based model.
“Under this model, which has been independently verified as a cost-saving model, annual pay is determined by benchmarking to agreed external companies, and annual movement within salary ranges is aligned to performance. This effectively means that the percentage of pay involved is ‘at risk’ and PRAs are only paid if certain performance targets are met. Under this pay model there is also a pay freeze until 2016.”
Johnny said that the trade union group at Irish Water ( SIPTU, IMPACT, Unite) deemed the decision not to pay the PRAs to Irish Water staff last year as a breach of agreement and referred the matter to the LRC.
Under the LRC’s proposals, annual increments ranging from 1.5% to 3% of salary (and which are non-pensionable) will be paid from 1st January 2014 to the 31st December 2016. The increments will be withdrawn at the end of 2016 and the company will then revert to the previous pay and reward model.
The LRC said the proposals are “the absolute limit of what can be achieved taking account of all the factors arising in this dispute.” Unions and the employer have agreed to recommend the deal for acceptance. If any one party rejects it, the terms are withdrawn.
Responding to the proposals, Johnny said that the LRC had regarded management’s decision to abandon the cost-saving pay structure as ‘unfortunate’ and that a recent independent review of the pay model confirms its ongoing appropriateness. “The interim solution, which temporarily reverts to an incremental pay model, vindicates the position of the staff who have worked hard through a very challenging period,” he said.
Irish Water is part of the Ervia Group (formerly Bord Gais). An independent review of the Ervia Group’s pay model, carried out by AON/Ampersand found that, contrary to perceptions, there is “no evidence that a so-called richly rewarded ‘bonus culture’ is in.
PSI welcomes EU Parliament vote on Right2Water citizens' initiative
Public Services International (PSI) has joined the European Public Services Union (EPSU) in welcoming the vote of the European Parliament on 8th September, which puts additional pressure on the European Commission to make concrete legislative proposals to recognise the human right to water and sanitation, as defined by the UN.
In a statement, PSI said that the approved text makes some important recommendations to the Commission, including:
- The reaffirmation that water is not a commodity but a public good
- Recognises the failure of privatisation to increase access and equity, and demands that the Commission cease to propose and impose any further privatisations (singling out the Troika’s privatisation impositions on Greece)
- Calls for removing water and sanitation from all trade agreements, particularly TTIP and TISA
- Calls for transparency, accountability and participation in all aspects of water management
- Considers that the option of re-municipalisation of water services should be guaranteed in the future.
Rosa Pavanelli, General Secretary of PSI said, “I stand with EPSU and all the trade unions and civil society organisations in Europe that have made this possible. It is one more important step in an ongoing fight to ensure universal access to quality public services for all. The importance of this vote extends beyond the borders of Europe, as the EU is the single-largest donor in the water and sanitation sector. However, this is not the final victory, and we will continue to put pressure, wherever required.”
IMPACT has continued to support the Right2Water.eu initiative since its launch in 2012.
