Cost of 10 days' bonus leave for Covid could top €1bn, says Michael McGrath
A Labour Court recommendation on Wednesday said the Health Service Executive had estimated that a claim for 10 days’ additional leave by unions for healthcare workers could cost at least €377m.
Granting 10 days' leave by way of a Covid-19 recognition bonus to all public sector workers could cost in excess of €1bn, Public Expenditure Minister Michael McGrath has said.
A Labour Court recommendation on Wednesday said the Health Service Executive had estimated that a claim for 10 days’ additional leave by unions for healthcare workers could cost at least €377m.
Asked about the bonus payment, detailed on Monday in the Irish Examiner, Mr McGrath said that when overtime and agency staff costs are factored in, the cost would be in excess of €500m.
He said that to adopt that payment for all 300,000 public sector workers would hit the taxpayer with a cost of in excess of €1 billion. Mr McGrath did say the government acknowledges the contribution of frontline workers and is committed to recognising their efforts.
However, he said we must consider the whole of society and called on private companies to reward their workers who he said “looked after us” in the darkest days of the pandemic.
He said the Government will bring forward the proposed payment “in the coming weeks” and did not rule out that it would be announced in conjunction with Budget 2022 on October 12.
He specifically referenced the efforts of staff in the prison service, in social protection, the gardaí and the Revenue Commissioners in the public service but also referenced the country’s shop workers and cleaners.
Facing questions from Cork TDs Mick Barry and Michael Collins who sought clarity as to when the payments will begin, Mr McGrath said the intent of the payment is to “be as fair as possible”. However, he warned there is a very significant cost associated with the once-off ex-gratia payment.
“The minimum cost of €377m could exceed half a billion when agency staff and overtime is factored in to allow people take leave. To extend that across the public service, the cost would be €1bn,” Mr McGrath said.
Asked about the review of the Freedom of Information Act, Mr McGrath said he is driven by a need to improve transparency.
“The remit and outcomes of the review will be driven by evidence. The review will, accordingly, seek inputs from the broadest possible range of stakeholders throughout the process. It is planned that public consultation will take place later this year,” he said.
