Staff at the Bon Secours private hospital in Renmore will begin strike action on Monday over cuts in pay.
The unions involved claim the reductions of between four and five per cent in basic pay and a five per cent reduction in allowances paid to staff are “illegal” and are organising demonstrations at the Bon Secours group’s four private hospitals in Dublin, Galway, Tralee and Cork.
However, the hospital group insists the cuts are necessary and says it will face a loss in 2010 if they are not implemented.
In a statement the Irish Nurses and Midwives Organisation and SIPTU (two of the four unions involved - the others are Impact and the MLSA ) say the Bon Secours Hospital group reported an accumulated income of €31 million; €80 million in capital and reserves and a valuation of €112 million on its tangible assets (including land, buildings and equipment ).
Phil Ni Sheaghdha, INMO director of industrial relations, says the unions are seeking a reversal of the cuts.
“These pay cuts are illegal and we will continue to seek their removal as we believe that they are not necessary considering the operating surplus of this company. This announcement of pay cuts, to apply from January 1, 2010, was made immediately prior to Christmas without any negotiation or discussion with staff or their representatives. It is an example of the poor regard for loyal staff and a complete disregard for agreed industrial relations procedures and the legal requirements of consultation and negotiation,” she claims.
SIPTU health sector organiser Paul Bell, says the Bon Secours group is holding the VHI responsible for the pay cuts because of its reduced funding for the hospital.
“Our members are not only suffering illegal and unilateral pay cuts but they have no security in relation to their pay into the future.”
A spokesperson for the Bon Secours Health System says it is working with the unions to try to bring about a resolution.
“Re the pay adjustment, traditionally pay rates have been linked to HSE rates. The pay adjustment being applied in the Bon Secours - four to five per cent - are the lowest being applied within the private hospital sector.”
The hospital group must implement a range of cost containment measures in 2010, she says, because of a cut in reimbursement rates by private health insurers, such as VHI.
“If the Bon Secours does not implement cost containment measures it would incur substantial losses otherwise. The primary concern in terms of the management team is to sustain business and protect employment.”
The Bon Secours Hospital Galway is a 90 bed acute care facility providing a wide range of surgical and medical services. For more than 50 years, the hospital has participated in the healthcare needs of the people of Galway and the adjoining counties.
Work is under way on a €15 million expansion project which began near the end of 2009 and is expected to take approximately 18 months to complete. This will provide the private hospital with 50 new bedrooms, a new physiotherapy department and a dining room housed on three levels at the front of the hospital on the Dublin Road side. A new building has been constructed to the rear of the hospital as a forerunner to the main development, which accommodates expanded laboratory, stores and office accommodation.
The Bon Secours Health System is the largest private healthcare provider in Ireland, comprising four hospitals in Galway, Cork, Dublin and Tralee as well as Mount Desert Care Village in Cork. 33
