THE GOVERNMENT is to seek reduced pay levels for senior staff below chief executive level in commercial State companies.
Minster for Public Expenditure and Reform Brendan Howlin said the Government had already set new salary caps for chief executives in the commercial State sector and would talk with company boards in the new year on pay for personnel below this level.
The discussions are likely to centre on pay for senior staff below chief executive level who are appointed in the future.
The Government has already asked existing staff earning more than the official maximum level of €250,000 to take a 15 per cent voluntary waiver of pay.
“It makes no sense in terms of administration, unless you have an expert brought in for a particular purpose, to have subordinates paid more than chief executive officers .
“That is the dialogue we will have to engage in next year,” Mr Howlin said.
The Minister said he now wanted to “bed down” the changes the Government had introduced this year on pay in the Civil Service, for chief executives in commercial State companies and in relation to public service pensions.
“Beyond that we will be looking at dialogue through line Ministers with boards under their authority to ensure that the general policies follow through beyond CEOs.”
The Minister said that in setting the reduced pay levels for newly appointed chief executives in commercial State companies, the Government had taken the recommended remuneration level arising from a consultancy report a number of years ago, applied the pay cuts introduced in the various sectors under the financial emergency legislation as well as a further 10 per cent reduction.
He indicated that the Government would be looking for revised pay levels for newly appointed top-level staff commensurate with these reductions.
Mr Howlin also said the anticipated departure of large numbers of public service staff by the end of February would represent a real test of the Croke Park agreement.
“I made it clear we need to have flexibilities and no resistance to the movement of people and to ensure we have as smooth a delivery of service as we can at a time of significant churn.”
Mr Howlin also suggested that too much had been read into comments made recently by Minister for Communications Pat Rabbitte which suggested that the Croke Park agreement may have to be renegotiated depending on economic factors.
