NTMA boss Corrigan sought to protect staff pay

The head of the National Treasury Management Agency has intervened to protect the interests of high-earners at the agency facing reductions in pay.

Newly released records show John Corrigan, chief executive of the NTMA, wrote to finance minister Michael Noonan to highlight that his employees, because they are not members of trade unions, would not be able to avail of the proposed salary restoration through ratification of Labour Relations Commission’s Haddington Road agreement.

As part of the fresh public sector pay cuts, staff at the NTMA lost their exemption from public pay cuts. Those earning over €185,000 across the public service are facing cuts of 10% in salary.

Under the Haddington Road proposals, those earning over €65,000 will have their pay restored in two phases over an 18-month period at the end of the three year agreement.

Currently, the NTMA employs 13 people earning over €200,000, including Mr Corrigan, who enjoys an annual remuneration of €416,500.

He is facing a pay cut of €41,650, reducing his salary to €374,850. Nama chief executive Brendan McDonagh , is facing a pay cut of €36,500 on his remuneration of €365,500.

The 13 NTMA employees earning in excess of €200,000 are all facing the 10% pay cut. A further 32 staff earn between €150,001 to €200,000, and 105 are earning from €100,001 to €150,000, with those employees facing pay reductions between 8% to 10%.

The NTMA, which is the parent of Nama, falls outside public grades as the legislation which established it in 1990 deliberately positioned it outside of public service structures with operational freedom to negotiate market-competitive salaries.

NTMA staff members are already subject to the Public Service Pension Deduction.

In the letter dated May 27, released through the FoI Act, Mr Corrigan told Mr Noonan that the LRC’s proposals “would appear to give rise to an anomalous situation as NTMA employees (because they are not members of trade unions) cannot avail of the proposed salary restoration through ratification of the LRC proposals.

“Accordingly, I would request that this potential anomaly be addressed as soon as practicable.”

Mr Noonan responded on Jun 11, stating that he appreciates the LRC proposal “appears to give rise to an anomalous situation as NTMA employees cannot avail of the proposed salary restoration through ratification of the Haddington Road Agreement.

“Accordingly, I hereby confirm that it is the intention that NTMA employees earning equivalent salaries to those outlined will be treated in a similar manner, in respect of the proposed salary restoration to those public servants whose trade unions have ratified the Haddington Road agreement.”

The move to ensure that pay reductions on NTMA staff members are mandatory followed three employees earning over €200,0000 refusing a request by Mr Noonan to voluntary waive 15% of their salary.