Quinn plans new university pay law

Universities have reacted angrily to Government plans that will make sure they never again give un-authorised bonuses to staff.

Although already limited to pay ceilings for senior staff, the country’s seven universities paid over €8m in unauthorised allowances and unapproved pension contributions to more than 200 staff between 2005 and 2011.

The Higher Education Authority (HEA) recently finalised arrangements for the money to be recouped or diverted to student services.

However, Education Minister Ruairi Quinn yesterday received Cabinet approval for changes to the 1997 Universities Act that will ensure universities comply with pay scales into the future.

The Irish Universities Association (IUA) said it was shocked, saying the move flies in the face of international practice and would damage Irish universities.

“It will lead to further falls in the international rankings on the grounds of how the best people coming from other countries are likely to feel about the funding of higher education, and that the Government wants to regulate it in such a heavy-handed and disproportionate way,” said chief executive, Ned Costello.

While the demands of university bosses for greater freedom on how they spend their budgets have fallen on deaf ears at Government level, the principle is supported by HEA chairman John Hennessy. He has regularly referred to his private sector experience, as chair of Ericsson Ireland, and the importance of being able to offer high pay to attract and reward the best people but also the power to fire under-performing staff.

However, Mr Quinn’s statement announcing the proposed legal changes said it would give him the power to require universities to comply with Government guidelines on pay, allowances, pensions, and staffing numbers.

“While I recognise the desirability of universities retaining certain levels of autonomy, I believe the legislation I am proposing will strike the right balance between such autonomy and protecting the exchequer at a time of financial crisis and growing student populations,” he said.

At the Dáil Public Accounts Committee last week, University College Dublin president Hugh Brady said it had been more difficult to persuade staff to take on important management roles since it stopped paying allowances in 2009.

The proposed legislation will also force universities to adhere to industrial relations deals such as Croke Park, which could force Trinity College Dublin to reinstate three staff members it made redundant.

The college has refused to do so, despite a Labour Court recommendation.

The move on pay may be welcomed by critics of third-level remuneration, with Government recruitment bans having seen staffing fall by up to 10% at some colleges in a four-year period when student numbers have risen by up to 15%.