SOME SENIOR health service managers could receive severance payments of between €200,000 and €300,000 under the terms of the voluntary redundancy scheme announced yesterday by the Government.
The Health Service Executive (HSE) said last night the level of interest at local and national level in the voluntary redundancy scheme and the new early retirement package put forward by Minister for Health Mary Harney had been “quite high”.
However, management sources said it was too early to predict the number who would ultimately opt to leave.
Ms Harney suggested yesterday that up to 4,000 staff in managerial and administrative grades could leave, while HSE national director of human resources Seán McGrath last night estimated that between 3,000 and 5,000 personnel could depart.
The new schemes are aimed primarily at managerial and administrative staff in the HSE, and in voluntary hospitals and voluntary agencies funded by the HSE.
However, in a surprise move, the Government has also decided to offer the early retirement and voluntary redundancy schemes to support staff such as porters, cleaners and catering personnel.
As revealed in The Irish Timesyesterday, staff taking the voluntary redundancy scheme will receive three weeks salary for each year of service in addition to their statutory entitlement, up to a limit of two years pay.
This could see some senior managers who currently earn €100,000 or more receiving gross payouts of more than €200,000.
The Government has set a limit of €400 million on the amount that can be spent on the schemes.
Depending on the level of interest from staff, it is this budget cap that will largely determine the exact numbers to leave.
Under the rules of the schemes, applications from management and administrative staff will be given priority over those from support staff in all cases.
Such applications will be “approved automatically”, subject to the overall cost of the schemes not being breached.
The Government has set a deadline of November 19th for staff to apply under the severance schemes, while personnel taking the packages must leave before December 30th.
Ms Harney said the schemes could generate savings of about €200 million a year on the health service payroll.
She said the schemes would be offered on a once-off basis and the terms were “fair and reasonable”.
“There is general acceptance of the need to reduce the numbers of management and administrative staff in the health service,” the Minister added.
“For that reason, all applications from management and administrative staff to avail of the schemes will be approved.
