Mr. Paul Bell:

On behalf of the Irish Congress of Trade Unions, I thank the Chairman and the members of the committee for the invitation to participate in this discussion on issues affecting workers employed in section 39 organisations.

The services provided by section 39 organisations are critical to the functioning of the public health service. They provide hospice services, intellectual disability services, training and education services, and home care services. The members of unions employed in section 39 organisations are all qualified in their fields of expertise to the same standard as their counterparts employed directly by the HSE and those employed in section 38 organisations. Section 39 organisations provide services through service level agreements with the Health Service Executive and the Department of Education and Skills.

Many of these organisations are household names, including the Irish Wheelchair Association, Rehab Group, comprising Rehabcare and the National Learning Network, and Cheshire Homes. The numbers employed in these organisations can range from as few as three to several hundred. We estimate that there are approximately 12,000 full-time equivalents employed in the sector.

Our members employed in section 39 organisations are not public servants. As a result of this, they do not fall within the scope of public sector pay agreements, including the most recent public service stability agreement. However, a significant number of section 39 organisations have established pay linkages with the pay scales in the HSE and wider public service.

In 2010, the HSE formally advised section 39 organisations that the block grant would be cut and that the cut in the grant was to be achieved through cuts in staff salary in line with those applied to public servants under FEMPI legislation. The HSE at that time also confirmed that it would not pay section 39 organisations for incremental progression. As a result of this, the pay of union members in section 39 organisations had the same cuts applied to them as those in the public sector. However, union members in section 39 organisations continued to provide the vital services that so many people relied on.

As members of the committee will be aware, the process of gradually restoring the pay of public servants commenced as part of the Lansdowne Road agreement. Once this process was under way unions with members employed in section 39 organisations submitted claims for the restoration of pay. A small number of section 39 employers commenced restoration in 2017 from their own resources while the majority did not citing inability to pay, as the HSE did not make the appropriate amendments to the block grant it cut in 2010.

In response to the claims submitted by unions the HSE, the Department of Health and the Department of Public Expenditure and Reform continued to maintain that section 39 organisations have no pay linkage to the public service. The HSE advised section 39 organisations that unions in the sector would probably make claims for pay restoration. However, the HSE instructed section 39 organisations that these claims should not be conceded and should be referred to the WRC and Labour Court as appropriate, as outlined in appendix 2.

Unions with members in the section 39 organisations have pursued claims for pay restoration through the WRC and the Labour Court. The Labour Court has issued recommendations supporting the unions claim for pay restoration in at least eight cases. However, the HSE, the Department of Health and the Department of Public Expenditure and Reform have refused to provide the additional funds to allow for the implementation of the Labour Court recommendations. This position is untenable and unacceptable. Furthermore, agreement has been reached under the auspices of the Workplace Relations Commission on increased funding for section 39 organisations from the HSE to provide for increases in pay due to members of unions who provide sleepovers.

It is untenable and unacceptable particularly in light of statements by the Taoiseach in Dáil Éireann that there was an established pay link between section 39 organisations and the wider public service, and in the knowledge that the Oireachtas passed a motion calling for a the issue of pay restoration to be resolved through an agreed process.

The ongoing refusal by the Department of Public Expenditure and Reform, Department of Health and HSE to engage in negotiation or indeed a focused, transparent and dedicated process with the aim of restoring the pay of union members in section 39 organisations has forced one union in the sector to service notice of strike action.

I will now outline the impact on the sector. The apparent unwillingness to restore the pay of union members in section 39 organisations is having a devastating effect on staff morale. Staff, all of whom are professionally qualified, are now starting to vote with their feet and are leaving to take up opportunities to work in section 38 organisations, the HSE or the Department of Education and Skills. Section 38 organisations, the HSE and the Department of Health are in a position to offer higher rates of pay courtesy of pay restoration under the terms of the public service stability agreement. In addition both the HSE and section 38 employers are offering incremental credit in recognition of experience and service. This has also resulted in section 39 organisations increasing their reliance on agency staff which members of the committee will be aware is more expensive than employing staff directly.

The ongoing difficulties are also beginning to impact on those who rely on the education training support and care services provided by section 39 organisations. We have reports that service users are now been subjected to breaks in continuity of care. The committee will be aware that sections 38 and 39 organisations provide 18% of health and social care services that are available as part of public health services. These services could not be directly provided by the HSE without massive investment in additional capacity.

In this submission, we have attempted to summarise the problems faced by union members regarding their pay and the knock-on impact on staff morale. We have also sought to highlight the impact on the people who rely on the services provided by these organisations. While we appreciate that the committee may not be in a position to resolve the issues we have sought to highlight, we hope the information the committee will gather during the course of the morning will allow it to advocate for initiatives that will lead to a satisfactory resolution for all concerned. Ultimately these difficulties can only be resolved if all the parties engage constructively. The unions will not be found wanting if we are presented with the opportunity to do so.