THE EMPLOYERS’ organisation Ibec is seeking a two-year pay pause and new no-strike provisions as part of a new national agreement on economic recovery.
Informed sources said Ibec representatives had tabled the proposals at talks on a new deal last night. It is understood unions are opposing the move. Sources also said the Ibec proposals involved no pay increases until 2011, as well as a new industrial peace clause and improved inability-to-pay provisions for companies.
Separately yesterday Ibec said that pay cuts had become the “new reality” in Irish companies. Speaking at a conference on “surviving the recession”, Ibec director of industrial relations Brendan McGinty said that in a survey of 760 companies about 20 per cent had said they would be implementing pay reductions.
He said pay cuts were also under consideration in a further 15 per cent of companies. Some 64 per cent of companies believed they were likely to introduce pay freezes in the next three months while 62 per cent of those surveyed said they would be halting recruitment.
He said the Ibec survey of business sentiment, involving companies which between them employed about 77,000 people, had found that nearly a quarter expected to change terms and conditions for staff with a further 26 per cent considering doing so.
About 29 per cent of companies surveyed expected to have to reduce their permanent staff while this was under consideration in a further 24 per cent.
Mr McGinty said at the time of the last agreement Ibec believed that up to 15 per cent of companies could avail of the inability to pay provisions. However, he said the number now having difficulty making such payments would be about 85 per cent.
At the same conference, Ibec’s director of policy Danny McCoy said in volume terms, GDP may contract by just under 9 per cent this year.
Talks between trade unions and Government representatives on a new agreement also resumed yesterday at the National Economic and Social Council.
Speaking prior to the talks, the general secretary of the Irish Congress of Trade Unions, David Begg, said some issues such as private sector pensions were more troublesome than others. This was really complicated and a big issue for the Government.
He indicated that the Government was worried about its possible financial exposure in any new pension protection fund to apply in cases where private schemes ran into trouble.
Mr Begg said that securing guarantees in relation to social welfare rates was also problematic.
On the controversial public sector levy, he said: “They know it has to be dealt with and they need some response for it but they are not going to tell us until they know what the rest of it is.”