THE COUNTRY'S largest trade union, Siptu, has voted to enter into talks with the Government and other social partners on a new national pay agreement.
At a special meeting in Dublin yesterday, over 500 Siptu delegates voted overwhelmingly to back proposals put forward by the Irish Congress of Trade Unions (Ictu) that it should participate in the talks with the aim of securing improvements in pay, pensions, rights for agency workers and public services.
Ictu will decide on whether it should take part in the process at a special conference on Thursday.
Siptu president Jack O'Connor told delegates that the forthcoming talks could prove to be the most difficult in the 20-year history of social partnership.
He said that while the negotiating team would do its best to deliver an acceptable agreement, the union also had to prepare for the alternatives.
"We are not afraid to negotiate, but we are not afraid to fight either. This time it might be necessary to fight and it is important that people prepare to fight now", he said.
Siptu general secretary Joe O'Flynn said that a nationwide consultation process had identified pay, pensions, trade union recognition and quality of life issues such as accessible and high-quality healthcare, affordable housing and childcare facilities as key concerns for Siptu members.
On pay, Mr O'Flynn said members wanted to protect living standards with basic pay increases covering inflation, plus a share in the significant economic growth that had taken place over the past 27 months.
"There is also concern that the low-paid receive flat-rate increases as the rise in the cost of food, fuel and interest rates impact disproportionately on them," he said.
On the controversial benchmarking report, which recommended no special increases for most public sector workers, he said members wanted a new mechanism put in place.
Mr O'Flynn also said that members would also like an agreement of a shorter duration than previously, with a review clause included.
Siptu head of research Manus O'Riordan said that higher inflation had wiped out any real wage gain under the current national pay deal which provided for 10 per cent increases over 27 months.
He said that the consumer price index had increased by as much as 11.7 per cent over the period, leaving the lower-paid facing a decrease of 0.7 per cent and those on average earnings with a drop of 1.2 per cent in real terms.
Meanwhile, employers' group Ibec said that a pay deal which chased inflation would be bad for the country and put more jobs at risk at a time when the economy was facing its biggest challenge in 20 years.
Ibec director general Turlough O'Sullivan said that Irish pay rates had been growing at twice the pace of those in other euro area countries and that this could not continue.
He said that the increase in inflation in March was a reflection of persistent international price pressures which were outside our control.
Mr O'Sullivan said that leadership was now needed from social partnership.
"It is not sustainable to suggest that pay should chase inflation. Inflation is a problem for all of us, consumers and business alike. Business cannot seek an automatic inflation adjustment in the marketplace.
"No sensible person would suggest that the more difficult it becomes for Irish companies to do business, the more we should push up costs and further damage our ability to trade and to protect jobs", he said.