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Rehab faces €880,000 bill for failing to negotiate pay cuts

DISABILITY group Rehab faces an estimated €880,000 bill for failing to properly negotiate pay cuts with staff.

More than 1,000 workers are due compensation -- worth an average of €800 each -- after suffering the same pay cuts as public servants.

This is on top of an estimated €500,000 bill for a Christmas bonus due over three years ago.

SIPTU claims it has yet to abide by a Labour Court ruling recommending payment of the bonus.

In a new recommendation, the Labour Court said the state-funded agency should refund part of previous pay cuts because it did not follow industrial relations procedures. But it said the pay cuts, imposed two years ago, should stay in place as the staff had a "clearly established pay relationship" with the state employees.

It said the pay cuts were justified because they benefited from the same pay hikes enjoyed by public servants under benchmarking over the years.

The workers have been locked in a dispute with the company since Rehab slashed wages by between five and 15pc two years ago, when the then government imposed a pay cut on public servants.

Irish Independent