MAJOR DIVISIONS remain between employers and unions over pay and employment rights following the resumption of talks yesterday on a new social partnership agreement.
It is understood that employers' group Ibec said it would not sign up for any new agreement involving introduction of legislation to make companies recognise trade unions for collective bargaining purposes.
However, the Irish Congress of Trade Unions argued that there was a need for the right of workers to collectively negotiate with their employer to be recognised in law.
Separately, trade unions again ruled out any form of pay freeze or pay pause in the public sector, as sought by employers last week.
For the first time, union leaders signalled that any Government cutbacks, particularly in health and education, to deal with the deteriorating economic situation, could have implications for the pay talks.
John Douglas of Mandate, representing retail and bar workers, said any such cutbacks in health and education could be "deal breakers" when the crunch came. He said low and middle income families were feeling the pinch and that wage restraint or pay freezes would not be a runner.
Larry Broderick of the finance union IBOA said the economic situation was posing a challenge, but that the concept of social partnership held that views of employees would be taken on board.
"We are hearing nothing but pre-emptive strikes by employers and the Government about what the solutions to these problems should be," he said.
Mr Broderick said if there was to be a new deal, it would have to recognise the productivity given by workers over the past decade. "There will be no national wage agreement if there are pay cuts."
Jimmy Kelly, of Unite, said there had been "poor mouthing" by employers for the past week. Pay freezes were not acceptable and the union was seeking wage increases of more than inflation.
Blair Horan of the CPSU, representing lower grade civil servants, said one thing that would not be on the agenda for the talks would be any public service pay freeze.
"People have done quite well out of this economy. It is now time to look after people who have not done so well," he said.
Ibec director general Turlough O'Sullivan said on his way into the talks that everyone knew that the economy was facing a serious downturn. He said that Government revenues were down by €1.2 billion and that 7,000 people were losing their jobs each month.
He said unions might say one thing in public, but they knew the reality of the situation.
Ibec was committed to social partnership as it was the best way of doing business, he added. However, it had to deliver solutions which were good for Ireland and for jobs. "If it does not deliver those kind of solutions then we will have to find a model that does," he said.
Asked if it was possible that Ibec could walk away from the process, he said it was, but that the body would prefer this not to happen.
Yesterday's talks concentrated mainly on the issue of collective bargaining rights. Unions have argued that existing legislation allowing unions a limited right to represent staff in non-union companies had been emasculated following a Supreme Court ruling last year involving Ryanair.
It is understood Ibec said at the talks yesterday that while it had concerns about procedures used under this legislation, it believed the parties should sit down and deal with the problems, rather than introducing a new Bill.
Government officials also met trade unions in a bilateral session, in a bid to see how gaps can be bridged. They will meet employers today.