THE GOVERNMENT is to circulate a framework document to the social partners today setting out headings and key areas for negotiations on the national recovery programme.
Talks between unions and Government officials yesterday focused mainly on a framework for discussions to take place in the days ahead.
Yesterday’s talks resumed after teatime and adjourned shortly after 9pm. The talks are to recommence this afternoon.
While Government negotiators provided no details of its proposals for securing €2 billion in spending cuts this year, union sources said that some progress had been made.
At a meeting yesterday morning, the Irish Congress of Trade Unions (Ictu) sought a redrafting of an initial protocol document drawn up by Government officials. The unions maintained that the protocol document was “too vague”.
The unions are insisting that any deal on economic recovery cannot just be about cuts in pay and public services. The Ictu wants an overall agreement that would see all sectors of society contributing to the recovery effort according to their means.
The unions have argued that this should involve a broadening of the tax base including measures such as the introduction of a new 48 per cent tax band, a new property tax on second or “trophy” homes, curbs on executive pay and restrictions on tax breaks, which they believe predominantly benefit the wealthy.
In the framework for the talks the unions are looking for concrete evidence – and not merely aspirations – that the Government is willing to move on such issues.
“There cannot be the usual vague language associated with social partnership on this occasion. That was okay when we were on the upside of the boom and when there was money available. But now we are talking about cuts. The language in the original framework document produced by the Government was like a blancmange,” one source close to the process told The Irish Times last night.
Entering the talks, union leaders expressed unhappiness at the slow pace of progress and again ruled out cuts in pay.
General secretary of the Impact trade union Peter McLoone said nobody was happy at the delays. He said that these were not helping the credibility of the process. The INTO’s general secretary John Carr said he had no mandate to negotiate pay cuts.
In recent days, Ministers Batt O’Keeffe and Dermot Ahern have said that all options were on the table, including cuts in pay.
However, Ictu has drawn a distinction between core pay and savings that could be made in the Government’s overall pay bill. It has said it is willing to discuss issues such as overtime, flexible working and incentivised career breaks.
Some union leaders, but by no means all, have signalled a willingness to engage on issues such as increments or premium pay for public sector staff. Reforms in these areas could generate sizeable savings for the Government.
In the health sector, the HSE pays out over €1 billion per year in overtime, allowances, premium pay for staff in addition to salaries.
John Whelan, of the Irish Exporters’ Association, said yesterday that the introduction of a pension levy for public servants could generate a significant portion of the €2 billion in cuts sought by the Government. However, some unions such as the Irish Nurses Organisation have rejected cuts in pay of any description.
Talks on a national economic recovery programme have been complicated by the decision of the employers’ group, Ibec, to seek a deferral on the implementation of the new pay deal for at least 12 months. Ictu yesterday rejected any deferralof the deal.