Marathon Man
Registered User
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- 176
Would you prefer they just made a load of public servants redundant, paid them statutory redundancy and then had them drawing the dole?
How would that work out cheaper for the tax payers?
Funny, when PTSB introduced a similar scheme it was hailed as a creative, innovative way to reduce payroll costs during a serious downturn but still retain in the longer term the services of trained, experienced, dedicated staff.
When the civil service does the same thing, it's a waste of taxpayers money for those lazy evil scroungers who are probably creeping round the back of the taxpayer right now to pick his pocket of his last shilling.
That's it in a nutshell. In the real world of political compromise I think this is an excellent idea.Either way, the government is paying them some money towards their upkeep and the career break is probably the cheapest way to do it. As long as they reduce public sector numbers, why do you care if its in the form of career breaks or redundancies?
A civil servant on the average industrial wage, €37,000 - you won't find too many of those! - would get 3 x €12,500 while they're out on this scheme = €37,500. Previous to this they'd get nothing.
Example 2: Saving = (Salary * 3) - (redundancy payment + [let's just say they stay unemployed due to the current economic conditions] (156 * 204.30) ) = €111,000 - (€24,720 + €31,870.80) = Saving of €54,409.20Using someone with 1 dependant and 20 years service, they'd get €19,812 statutory redundancy (using Gov. on line calculator) and they'd be entitled to jobseekers benefit, approx. €340/w = €52884 over the three years, totalling €72,696. Their salary had they stayed would have been €111,000. Thus saving €38,304 in direct payments.
When a similar scheme was announced by one of the building societies a few months ago, I don't remember anyone posting in outrage along the lines 'no wonder the banks are in the state they're in'
Point taken!
I don't know where you got your redundancy figures from - the figure I have above is based on the redundancy caluclator on the ETE website.
So, example 1: Saving = (Salary * 3) - (1/3 salary * 3) = Saving of €74,000
Example 2: Saving = (Salary * 3) - (redundancy payment + [let's just say they stay unemployed due to the current economic conditions] (156 * 204.30) ) = €111,000 - (€24,720 + €31,870.80) = Saving of €54,409.20
.......
We're evidently using different envelopes because I'm pretty sure that makes the first one better over the three year period envisaged.
Mrs Firefly works for the HSE...does this apply here anyone know?
Oops 1..... I put in the wrong dates. Your figure is correct.
..Oops 2
they're redundant! They're not coming back after 3 years....and they've been done without, without replacement for 3 years. Why would you then replace them? After 3 years, the saving is €37k p.a. forever!
wrt other posters point on PTSB, that was a private entity before, with no taxpayers money going in. I think things would be different now. ...or should be - I don't think reality has hit home with the bankers yet!
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