National Archives 1985: Pay rises for top RTÉ staff despite station’s money woes

The Government was sharply critical of the RTÉ Authority 30 years ago over its sanctioning of a large-scale pay rise for its senior staff at a time when the station was in serious financial difficulty.

Two government departments and the Labour Court also clashed over attempts to solve a pay dispute at the State broadcaster.

State papers show the then labour minister, Ruairi Quinn, expressed concern that an interim finding by the Labour Court in April 1985 on a pay claim for senior managers in RTÉ would have major pay implications for the rest of the public sector if it was accepted. Mr Quinn said the ruling would have to be seen in the light of the station’s serious financial situation, including a major deficiency in its pension fund.

In April 1984, arbitrator Con Murphy awarded a 20% pay hike to the RTÉ Managers’ Association (which had originally sought a 35% pay rise). Partial payment of up to 9% was authorised, but approval for the balance was withheld due to implications for public sector pay policy and questions over RTÉ’s ability to pay the award.

The issue was referred to the Labour Court following industrial action by RTÉ staff. It recommended the outstanding amounts be paid on the basis the award already existed and the RTÉ Authority had at all times been willing to pay it, notwithstanding the station’s financial difficulties.

A short time later, Labour Court chairman John Horgan contacted Mr Quinn to state that he had been seriously misled by both parties to the dispute at earlier stages of the investigation by the court. Mr Horgan said if he was aware at the time of such facts, he would not have recommended the pay increase be implemented straight away.

He also criticised the Department of the Public Service and the Department of Communications for failing to make submissions on the dispute to him before the issuing of his first report. It emerged that in its written submission to the arbitrator, RTÉ stated that any award which may be recommended would have to be referred to the Department of Posts & Telegraphs and the Department of Public Service for approval.

Mr Horgan said it should have been clear to all sides that any award made by the arbitrator could not be binding on RTÉ. “It should have been appreciated that such approval would be difficult and not automatic, particularly as the departments had not approved the procedure which gave rise to the award,” said Mr Horgan.

RTÉ had effectively delegated its discretion on staff pay to the departments which were effectively the employers in the case for the purpose of negotiating pay. Mr Horgan said the Labour Court had serious misgivings about the way the matter had been handled by the departments. However, that did not detract from the fact that the award could not be binding on both sides.

The Department of Posts & Telegraphs strongly objected to any attempt at arbitration and had not given its consent to RTÉ engaging in the process. Although this view was communicated to the station, RTÉ insisted it had no option but to allow the arbitration to proceed.

In a memo to the government in November 1985, Mr Quinn said payment of the full award would lead to pressure for commensurate pay increases across senior grades in the public sector. Alternatively, failure to pay would almost certainly result in a major industrial stoppage in RTÉ.

Alan Dukes, the finance minister, indicated the outcome of the Labour Court hearing was “most unsatisfactory” as RTÉ was now facing an annual bill of £1.5m to meet all outstanding awards.

Mr Quinn said the award was, by any objective standards, “extremely generous”. He added: “A substantial part of the blame for this must rest with RTÉ for the weak case it put to the arbitrator.”

Mr Quinn also remarked: “It needs to be said that the performance of RTÉ at the various Labour Court hearings is a matter of concern.”

He informed the government that RTÉ effectively tried to deny it had major financial difficulties, even though the pay award would bring the station into a loss-making situation. Mr Quinn questioned whether the Labour Court had complied with the terms of reference in relation to the pay dispute at RTÉ as it did not appear to have taken into account evidence by the Department of the Public Service and Dep-artment of Communications about public pay policy and RTÉ’s financial problems.

The government agreed discussions should take place with RTÉ regarding partial or full implementation of the pay award on the basis the station was capable of satisfying the labour minister it could be afforded.