State faces action by consultants over pay

Legal action by hundreds of hospital consultants claiming a breach of contract over pay will be “vigorously defended”, the Department of Health says.

It was responding to the HSE’s decision to withdraw its High Court appeal yesterday against compensation awards made to two consultants.

Finance Minister Michael Noonan said the State will defend in the courts any further compensation cases brought by hospital consultants.

“The withdrawal today is in respect of two consultants. But, not to continue to contest today doesn’t mean that further cases taken by any of the other 500 consultants won’t be defended in the court,” said Mr Noonan.

The Employment Appeals Tribunal had ruled in favour of anaesthetist Thomas Hogan and endocrinologist, John McDremott. They claimed the HSE breached their employment contracts by withholding money due to them. The EAT found there had been an unlawful deduction under the Payment of Wages Act and awarded Dr Hogan just under €100,000 and Dr McDermottt €14,000.

The Irish Hospital Consultants Association is supporting High Court proceedings initiated by hundreds of consultants against their employers for breaches of the 2008 Consultant Contract.

The cases relate to the underpayment of salary including retrospection, and, if successful, could cost the State €700m - although this has been disputed by the IHCA that maintains the final figure’s hard to calculate.

“It is the Government’s intention that all further cases will be vigorously defended,” the Department of Health said.

“The Departments of Health, Public Expenditure and Reform and Finance who are all now parties to the cases, are working with the Attorney General’s Office to progress a comprehensive and robust defence of any such claims in the public interest,” it stated.

The IHCA said the refusal of the HSE to honour the 2008 consultant contracts is one of the main reasons the health service is experiencing a medical brain drain.

The association’s secretary-general, Martin Varley, said there are more than 400 vacant permanent consultant posts - a situation that is undermining the quality and safety of patient care.

The Irish Medical Organisation said the cynical breach of contractual arrangements has significantly damaged morale among consultants.

Fianna Fáil spokesman on Health, Billy Kelleher, said the HSE should ensure that frontline health services are not affected by the consultant’s pay dispute: “If repayments need to be made, the HSE should seek to have them made incrementally and on a phased basis, to reduce the risk of cuts to frontline services.”