Ibec says U-turn on pay cuts is 'inconceivable'

THE EMPLOYERS' group Ibec has said that any reversal by the Government of the pay cuts for public service staff introduced in the Budget last December is inconceivable given the current state of the exchequer finances.

It also said that any agreement between the Government and public sector unions arising from the current round of talks must involve an ambitious programme of reform that transformed the way the public service operated.

It said there must be specific, measurable and transparent targets, with a firm implementation timetable.

In a statement last night, Ibec also called for the current industrial action in the public service to be called off.

It said that this only served to undermine Ireland's international reputation and inconvenience the general public.

Ibec's comments came as the Government representatives and public sector union leaders prepare to meet in a plenary session of the current talks on pay determination and reform today to take stock of where the process has gone over the past week.

Over recent days the parties have been meeting at sectoral level - health, education, local authorities and the Civil Service - to consider proposals for reform first drawn up in December.

The highly controversial issue of pay is not expected to be dealt with until later in the week.

In its statement, Ibec director Brendan McGinty said that through the benchmarking processes and national agreements taxpayers had already paid for reform of the public sector but what had been delivered was insufficient. He said the country still did not have an integrated public service.

Mr McGinty said: "Despite the pay cuts in December, the public sector pay and pensions bill this year will be €19 billion and will consume 60 per cent of all tax revenue.

Finding savings through public sector reform is the only way trade unions can hope to minimise the impact of future cuts, given that the Government is committed to making further budgetary adjustments of €3 billion in 2011 and €3 billion in 2012."

Ibec said that any agreement with the unions must involve:

Specific, measurable and transparent targets, with a firm implementation timetable;

Reducing waste and duplication through better and more flexible use of staff;

The overhaul of employment practices and human resource structures to address problems around redeployment, rosters, working patterns, skill mix issues, premium payments, performance management policies and absenteeism;

Improving service provision in the public sector by codifying and raising service standards;

The greater use of shared services, outsourcing and increased collaboration with the private sector;

Improving public procurement practices; and

A national oversight body to ensure full accountability and tran-sparency in the delivery of reform.