€400m HSE Scheme Seeks To Cut 5,000 Staff

The Minister for Health and Children, Mary Harney T.D., announced today that the Government has decided to approve a voluntary early retirement scheme and a voluntary redundancy scheme for certain categories of staff in the public health service.

HSE management has informed staff of the decision this morning and has also briefed trade union representatives.

The purpose of the schemes is to achieve a permanent reduction in the numbers employed in the public health sector from 2011 onwards and to facilitate health service reform. The Government has decided that funding of up to €400m will be made available in 2010 to fund the up-front costs of both schemes.

The Minister confirmed that the schemes will be open to both management and administrative grades, and support staff, but said that priority will be given to the management and administrative grades. Those wishing to avail of the schemes must retire or resign by 30 December 2010.

The Minister said:

“The Croke Park Agreement provides that the Government may offer voluntary mechanisms to exit the public service in specific sectors, bodies, locations or services.”

“I am pleased that the Minister for Finance has found it possible to provide funding this year to meet the upfront costs of these two schemes.”

“There is general acceptance of the need to reduce the numbers of management and administrative staff in the health service. For that reason, all applications from management and administrative staff to avail of the schemes will be approved.”

“It has been decided, given that funding is available this year, to offer the schemes to support staff also. There is scope for greater efficiency in the way these services are delivered.”

“These are voluntary schemes. It is a matter for each individual employee in the grades concerned to decide whether she/he wishes to avail of them. However, the terms on offer, particularly given the current budgetary, are fair and reasonable. The schemes will be available on a once-off basis to employees in the grades concerned and will not be repeated.”

“The voluntary nature of the schemes means it is not possible to predict how many individuals will avail of the schemes. Whatever the uptake is, the HSE and health service employers will have to use the other provisions of the Croke Park Agreement to ensure they continue to deliver services with reducing numbers.”

Full details of the package are available on the HSE website.
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