TALKS BETWEEN the Government, trade unions and employers on an agreement on economic recovery have been deferred until after Easter.
The discussion had been under way for the last fortnight, and it had been hoped by some parties an outline deal could have been reached before today’s budget.
On Sunday night unions effectively rejected an initial outline document put forward by Government officials on the basis that it was too weak and lacking in “hard, concrete specifics”.
In an agreed statement issued last night, the Government said that recent discussions with the Irish Congress of Trade Unions and the employers’ body Ibec had focused on: protecting jobs and assisting those who lose their jobs; responding to the challenges facing the pensions system; support for enterprises facing particular difficulties at present; taxation and expenditure adjustments required to return the public finances to stability; maintaining a sustainable level of social protection; people encountering difficulties meeting their mortgage commitments as a result of job losses; the transformation of public services; the concept of a national recovery bond; corporate governance concerns arising from recent developments; and employment rights and industrial relations.
The Government said there had also been engagement on issues relating to pay and related matters, including the pensions levy.
“The Government and each of the pillars of social partnership have agreed, in the light of the progress to date, that they will resume discussions following the supplementary budget to be introduced on April 7th.
“They have also reaffirmed their view that the best chance of laying the foundations for a sustainable economic recovery lies in an integrated response agreed through the social partnership process which simultaneously addresses all five dimensions of the crisis, and that is widely understood, can command the support and engage the ability and energy of the Irish people,” the statement added.
Union sources said the outline document on economic recovery presented by Government officials on Sunday night was based largely on a framework agreed by the social partners in January with updated material based on a National Economic and Social Council (NESC) report.
Sources said the document contained nothing on pay in either the public or private sectors, and nothing significant on pensions.
The deferral of the talks process had not been unexpected. However, it had been believed that Government officials and unions and employers would have met again yesterday. According to informed sources, this did not happen.
The five interlocking elements of the current crisis as identified by the NESC were: an economic crisis, a social crisis, a public finance crisis, a banking and financial crisis reflecting the global restrictions on lending, and a reputational crisis affecting international confidence in Ireland.