Ictu warns of Budget risk to pay deal

The Irish Congress of Trade Unions has warned today that the proposed new national pay deal is at real risk of being rejected by union members if they considered their vote on the agreement as a referendum on the Budget.

Ictu general secretary David Begg expressed strong concern at the introduction of the 1 per cent levy on all incomes, including those of low-paid workers.

He described the measure as "politically and morally wrong" and said it would have a significant impact on the working poor.

Mr Begg said that Ictu was seeking an urgent meeting with the Taoiseach and Minister for Finance to press for changes in the application of the levy before the Finance Bill was enacted.

Siptu, the country's largest trade union, has postponed a decesion on a recommendation to members on whether to accept the new deal, pending the forthcoming meeting with the Government on the income levy.

Mr Begg said that he did not think the Government would reverse its position on introducing the levy but that the unions would seek to have the threshold of €11 per hour put in place before the measure came into effect.