PUBLIC SECTOR unions will consider a deal with the Government on areas such as increments and premium out-of-hours payments in an effort to reduce the State’s payroll costs, as long as core wage levels are protected, some senior leaders have suggested.
Unions have ruled out cuts in core pay for the 313,000 staff in the public service. However, senior union leaders yesterday signalled that other areas, such as premium payments for staff working outside normal hours and increments, could be on the table for talks with the Government which are likely to begin next week.
The Government is seeking to save €2 billion in exchequer spending this year and sources close to the Department of Finance have suggested that a “substantial portion” of this will have to come from pay.
The bulk of public sector trade unions have now said publicly that they will not accept pay cuts.
Fine Gael leader Enda Kenny said yesterday that if there were to be pay cuts they should apply only to those earning more than €100,000, while there should also be a public sector pay freeze, including bonuses and increments, until the end of 2010.
Senior trade union figures said they would not be able to conclude a deal on pay cuts with the Government, as any agreement would not be binding on individual members.
Sources said that if unions were to reject pay cuts they would have to look at alternatives.
Unions are expected to consider their strategy at a meeting of the executive of the Irish Congress of Trade Unions on Wednesday.
However, senior union figures suggested yesterday that one area where they could be open to a deal was in relation to increments.
At present, most public sector staff have incremental pay scales under which they gradually work towards the maximum salary.
Informed sources said in a lot of cases the scales are constructed in such a way that a long-service increment is paid three years after the staff member reaches the top level.
Union sources suggested that there could be scope for a deal under which regular increments would be deferred for this year and next year on the understanding that when the economy improved, the final long-service increment would be paid immediately on reaching the top of the scale rather than after three years.
The non-payment of increments this year would save the Government €250 million.
Senior union figures have also suggested there could be scope for movement on premium payments to staff who work at night or weekends. However, sources acknowledge they could not be abolished in full.
This could prove controversial as it would particularly affect groups such as nurses or gardaí who operate 24-hour services.
It is understood that the HSE has argued it could save €48 million if the core working day was extended to 8pm and the existing premium payment of time and one-sixth for working between 6pm and 8pm was scrapped.
Two trade unions, the Civil Public and Services Union and the Teachers Union of Ireland, have insisted that pay increases in the public sector due next September must be paid by the Government. However, few union leaders believe privately that this deadline will be met.
The Government could save €260 million if the public sector pay pause was continued for the rest of the year as well as €990 million in 2010 and €1.2 billion in 2011 if it were further extended.
Senior union leaders also indicated that they could offer the Government full flexibility as part of the planned public sector voluntary redundancy programme.