NEW PROPOSALS for a voluntary redundancy scheme in the Health Service Executive could see about 5,000 clerical and administrative staff leaving within weeks.
Under proposals drawn up by the Department of Health, the Department of Finance and HSE management, staff will be offered redundancy terms of three weeks’ pay per year of service which would be capped at two years’ salary, it is understood.
Staff taking the offer would be entitled to statutory redundancy arrangements in addition. These involve the payment of two weeks’ pay for every year of service plus one further week. The amount of statutory redundancy is subject to a maximum earnings limit of €600 per week.
Highly placed sources said that under the proposals staff would be asked to take the package before the end of November.
It emerged last month that senior HSE management had briefed Minister for Health Mary Harney on a proposed voluntary redundancy scheme for between 3,000 and 6,000 clerical and administrative personnel. However no severance terms had been finalised at that stage.
There are about 17,000 staff in clerical and administrative grades in the organisation.
The sources said last night that the proposals for a voluntary redundancy programme involving about 5,000 staff had been drawn up by the Department of Health and the Department of Finance with the input of the HSE.
It is unclear whether the plan has been approved by Cabinet, but some sources suggested that an announcement could be made within days.
A Department of Health spokesman declined to comment last night on the proposals.
The introduction of a voluntary redundancy programme would not be in breach of the Croke Park agreement on public service reform as this rules out compulsory lay-offs only.
Two years ago the HSE proposed a voluntary redundancy programme for about 1,000 administrative personnel, but this was rejected by the Department of Finance.
Last month the Department of Health proposed severance terms of two weeks’ pay per year of service in addition to statutory entitlements for a small number of staff in the Irish Blood Transfusion Service. These terms have been rejected by the union representing the personnel concerned and the issue has been referred to the Labour Relations Commission.
Last week Labour Party leader Eamon Gilmore said a voluntary redundancy scheme in the public service would be required. However he said that this should be confined to areas of identifiable over-staffing, with critical frontline public services being protected.
Ms Harney has indicated that health spending may be cut by up to one billion euro next year .
The Minister has warned that unless the reforms and changes set out under the Croke Park agreement were delivered, patient services could be adversely affected by the substantial budget cuts in the health service that will take effect next year.
