THE GOVERNMENT has won an important test case over remuneration for hospital consultants which had potentially very significant implications for the health service pay bill.
If the State had lost it could have had to pay up to €100 million in back money to senior doctors.
The case centred on a claim brought by a consultant at Beaumont Hospital, Dublin under grievance and disputes procedures. As part of the case it was alleged his contract of employment had been breached by the failure of the Government to pay increases due.
Under the terms of the 2008 contract, consultants agreed to new work practices, restrictions on private practice and to be rostered over an expanded working day. In return they were to receive salaries of between €170,000 and €240,000, with increases to bring the rate up to these levels to be paid on a phased basis.
The Government paid the first phase of the increase but withheld the second phase due.
Subsequently it also introduced a 15 per cent pay cut for consultants as part of wide-ranging salary reductions in the public service.
In a briefing document for Minister for Health James Reilly earlier this year, the Department of Health warned of serious implications if the case was lost.
The document said in May 2010, the Irish Hospital Consultants Association had made submissions on behalf of a number of members under the consultant contract 2008 grievance and dispute procedures seeking confirmation from the mediator that their contract of employment had been breached.
It said the submissions related to salary increases allegedly due to consultants that were withheld due to the economic downturn.
“Typically the disputed amount could be up to €40k per consultant per annum from June 2009 and €30k back money in respect of period up to June 2009 for Type A contract-holders. Consultants who signed up to type B contracts would be due lesser amounts.”
There are about 2,000 hospital consultants covered by the new contract and this had led to estimates that the State could have faced a bill of up to €100 million if the case had been lost.
However, highly placed sources said the ruling from the mediator, Conal Devine, under the grievance and dispute procedure, had found there had been no breach of contract.
The Department of Health said yesterday it had noted the outcome. It declined to comment further or to publish the report.
Beaumont Hospital, which was the employer at the centre of the case, did not comment either.
The secretary general of the Irish Hospital Consultants Association, Martin Varley, who raised the issue of the case in his presentation to its recent annual conference, did not return phone calls on the issue. In his conference address last month he said that subject to the outcome of the case “a view will be taken on the matter of progressing other cases”.