The Taoiseach has told trade unions that the Government is prepared to reallocate some social welfare funding to finance new job protection measures.
The Goverment has also signalled in a letter to the Irish Congress of Trade Unions (Ictu) today that it could introduce new measures to support private sector pension schemes which are facing difficulties.
Ictu said that on the basis of the Taoiseach's letter it would be prepared to go back into talks on a national recovery deal subject to it receiving assurances from the Government that it would deal with the issue of pensions protection for workers in companies such as SR Technics which have voluntarily ceased trading.
The general secretary of Ictu David Begg said this afternoon that pensions protection in companies like SR Technics could become a deal breaker in talks on a national recovery deal.
Ictu also expressed concern that the budget for the Government's proposed new employment iniative would be limited to money diverted from social welfare funds. Mr Begg suggested that money could also be re-allocated from the capital programme.
In the letter to Ictu this morning Mr Cowen said: “In so far as we can transfer resources that would otherwise go to income support into job support we could do so to the limit of what is feasible”
He suggested that this fund could start with a specific allocation which would sub be increased over time. Mr Cowen noted that the trade unions had sought a 1 billion investment in job creation measures.
Mr Cowen stressed the importance of achieving public sector reform as part of any new deal on economic recovery. “I wish to emphasise the importance the Government attaches to the transformation agenda so the public service and our desire to conclude a robust agreement which delivers greater flexibility in the deployment of people and resources within and where necessary across public service boundaries.”
He said that it was only in this context that agreement on other issues including concerns of the public service unions could be addresses. The public service unions have sought guarantees in relation to pay and job numbers.