Minister Donohoe appoints Mr Kevin Duffy as Chairperson of the Public Service Pay Commission

The Minister for Public Expenditure and Reform, Paschal Donohoe TD, today (17 October 2016) requested government to note proposals for the establishment of a Public Service Pay Commission on a non-statutory basis.

The minister also announced the appointment of Mr Kevin Duffy, former Chairman of the Labour Court, as Chairperson of the commission, saying:

A further six members are to be appointed in the coming days.

The Public Service Pay Commission will be advisory in nature and will provide an initial report in the second quarter of 2017. The minister stressed that the government will retain the ability to negotiate directly with its employees in respect of pay.

The commission will not duplicate the work of the state’s existing industrial relations bodies: the Workplace Relations Commission and the Labour Court.

Its role will be to provide evidence-based objective analysis on pay matters to assist Department of Public Expenditure and Reform officials in discharging their negotiation function on behalf of government.

In line with commitments made in the Lansdowne Road Agreement, meetings have taken place in recent weeks with staff representatives (from the Public Services Committee of ICTU, Garda representative associations, and the Representative Association for Commissioned Officers in the Defence Forces) in relation to the establishment of the Public Service Pay Commission.

Terms of reference and an initial work programme for the commission were also circulated. For its initial report, the minister said that the commission will be asked to provide input on how the unwinding of the Financial Emergency Measures in the Public Interest legislation should proceed.

This will inform any future engagement with staff representatives in relation to pay.

The Minister for Public Expenditure and Reform today advised government of the outcome of the recent public consultation process concerning the role and methodology of the commission.

A short consultation report and copies of the submissions forwarded to the Department of Public Expenditure and Reform will be made available on the department’s website later this month.

The terms of reference for the commission are available below:

The PSPC is established to advise government on public service remuneration (see below for definition) policy.

Purpose

The commission is to provide an initial report to government in Quarter 2 of 2017 on public service remuneration in the context of the Financial Emergency Measures in the Public Interest Acts 2009–2015.

The findings of the commission will contribute to and inform government’s considerations in relation to Public Service remuneration and would assist the Department of Public Expenditure and Reform in discharging its negotiation function on behalf of government.

The pay commission will consider such other remuneration matters as it may be asked to consider by the Minister for Public Expenditure and Reform from time to time, including:

• providing objective analysis on the appropriate pay levels for identifiable groups within the public sector
• comparing appropriate rates for identifiable groups with prevailing private sector/market rates. This should have regard to evidence on recruitment and retention trends in respect of each group
• comparing appropriate rates for identifiable groups within the public service with their equivalents in other jurisdictions, particularly where internationally traded skillsets are required, having due regard to differences in living costs
• providing objective analysis on the appropriate pay levels for officeholders’ pay and pensions

When reaching its findings the commission shall have regard to:

• the superannuation and other benefits applying in the public service
• security of tenure, where it applies to public servants
• pay comparisons taking account of relevant characteristics
• the public service reform agenda
• evidence on recruitment and retention within the public service
• any other relevant matters including impact on national competitiveness and sustainable national finances and equity considerations
• any other issues as they are determined by government

Initial Work Programme

For its initial report the Commission will be asked to provide inputs on how the unwinding of the Financial Emergency Measures in the Public Interest legislation should proceed having regard to:

• the evolution of pay trends in the public and private sectors based on published data
• a comparison of pay rates for identifiable groups within the public service with prevailing non-public sector market rates
• international rates and comparisons where possible
• the state of the national finances

Following this initial report the government will give consideration to what other matters the commission may be asked to consider in due course.

Procedures

In progressing its work, the PSPC should utilise and analyse existing datasets and reports, as prepared and published by existing state and other agencies as appropriate. The PSPC may also undertake or commission additional research or data gathering where further information is required to comprehensively progress its terms of reference. The PSPC may invite relevant stakeholders to make submissions to the commission to further assist its considerations.

The PSPC must publish its findings and the evidence on which these are based.

The PSPC will not take the place of direct negotiations between government and employee representatives.

(Remuneration is defined as basic salary, allowances and all other benefits in cash or in kind, together with general terms in regard to superannuation, paid leave and so on.)

ENDS

Mr Kevin Duffy began his career as a bricklayer, and was an official of the Bricklayers’ Union for 15 years. In 1987, he joined the Irish Congress of Trade Unions as Assistant General Secretary in charge of industrial relations. Mr Duffy – who is a qualified barrister – retired from the Labour Court in June this year, having been appointed as Deputy Chairman in 1997, and serving as Chairman since 2003.

Mr Duffy currently chairs the Expert Panel on Water Charges, which is scheduled to report later this year.