A long-running pay dispute involving staff working for the health service and the Department of Social Care has been resolved.
Following arbitration through the Manx Industrial Relations Service, a pay award for 2011/12 and 2012/13 has been determined for staff employed under the Manx Pay Terms and Conditions (MPTC) and under National Joint Council (NJC) terms and conditions which are analogous to it.
The pay award for 2011/12 is a consolidated increase of 20p per hour. For 2012/13 the pay award is an unconsolidated one off lump sum of £400.
The sum will be paid to all employees as at April 1, 2012, with those recruited after this date during 2012/13 receiving a sum pro rata to their months of service.
Minister for Health David Anderson MHK said: ‘This pay award, determined by an independent arbitrator, will allow both sides to move forward, however finding the money to fund this award will put a significant strain on the department’s budget.
‘As has been the case for several years now, there is no central fund from Treasury for pay awards, which means that the money has to be found within the department’s existing budget, potentially impacting on frontline services.
‘I appreciate that pay restraint is a difficult issue and want to ensure that staff are rewarded for the excellent work they do – especially those who protect the vulnerable in health and social care.
‘That said, the rebalancing exercise to address the dramatic reduction in revenue from the VAT agreement with the UK means that government must look to reduce its costs, the majority of which are accounted for by the wage bill.’
Staff employed under MPTC and NJC include professions such as nursing and midwifery, psychology and social care, but does not include civil servants or manual workers under the Whitley Council.
The pay award will affect about 1,500 staff across the two departments.
Minister for Social Care Chris Robertshaw MHK said: ‘I am glad this issue has now been resolved. However, reducing the wage bill remains a serious challenge for the Isle of Man Government; one which we must, and are, facing up to with measures such as pay restraint and reducing headcount.
‘The cost of this pay award will be funded from within our existing budgets.’
Arbitration became necessary after a failure to agree a pay settlement for 2011/12 and 2012/13 via conciliation.
The arbitration process is binding on both parties.