O'Flynn criticises threat to pensions from 'golden circle'

THE GENERAL secretary of the country's largest union has said it is "nothing shortof disgraceful" that, as a result of the current financial crisis, ordinary workers were left facing the prospect of significantly-reduced pensions as they come to retire while the financial sector was protected to the tune of €400 billion by the Government.

Speaking at Siptu's regional biennial delegate conference in Tralee last night, Joe O'Flynn said the union was particularly concerned at the enormous impact which the current financial crisis was having on pension schemes.

"We have the scandalous situation where workers paying to provide for a reasonable standard of living in their senior years following retirement are witnessing the near-collapse of their pension schemes with the massive reduction in equity, property and other returns," he said.

Mr O'Flynn said this was bad enough for workers with defined benefit pensions. However, he said that worse still was the case of those with defined contributions schemes, where all of the risk was on the employees. "

Of course, we haven't seen any Government moves to assist these workers or to aid these schemes, which are in great difficulty," he said.

Mr O'Flynn said the whole world was living in a very volatile and challenging economic period "brought about by the greed of those in the golden circle who had little or no regard for the implications of their reckless and irresponsible actions".

"What we are now witnessing is the abject failure of corporate governances in its fullest sense. Of course, the fat cats who are responsible compensated themselves enormously for taking risks with other people's money and have suffered little themselves in respect of the collapse of banks and other financial institutions occurring almost on a daily basis," he said.

On the proposed new national pay deal, Mr O'Flynn said while there was "a strong possibility" that it may not fully protect living standards against inflation over its 21-month duration, he was satisfied that the terms were the best available.

He was certain that "not a cent was left behind at the negotiating table".

"Some members may feel that they could do somewhat better in a 'free for all' but I believe that the majority of our members would certainly not do any better, with those in weaker employments getting little or no increase in the present climate.

"It is important that members weigh up all of the pros and cons of the proposal and decide whether 6 per cent over 21 months, or 6½ per cent in the case of the low paid, represents the best that is available," Mr O'Flynn said.