The Health Service Executive has announced it is cutting allowances and other payments to almost five thousand junior doctors. The savings will amount to over €43 million. The decision was taken following the failure to reach an agreement on new contracts with the Irish Medical Organisation. The junior doctors are currently rostered to work from 9am to 5pm Monday to Friday, and are paid overtime for hours worked outside of this, and for their lunch breaks. The HSE must reduce their hours to no more than 48 hours per week in order to comply with the European Working Time Directive. It had been engaged in discussions with the Irish Medical Organisation at the Labour Relations Commission, but the HSE has said the failure to reach an agreement, combined with budgetary constraints, means it is pushing ahead with a range of cuts. €18.5million will be saved by cutting a range of allowances, while ending overtime payments for lunch breaks will save a further €25million.