SIPTU and the Irish Business and Employers Confederation (IBEC) remained on course for a major confrontation over inflation last night as the European Central Bank (ECB) voiced renewed concern at price rises in the euro zone.
The newly appointed director designate of IBEC, Mr Turlough O'Sullivan, reiterated his warning to the trade union movement that the pay agreement negotiated under the Programme for Prosperity and Fairness was "not renegotiable".
However SIPTU vice-president Mr Jack O'Connor said: "If the Government, or the employers, or both are not prepared to take steps necessary to curb inflation and sustain the basis on which the entire agreement is predicated, then it won't be viable. And that's a reality."
Their statements coincided with a warning by the ECB, in its monthly report for July, that it expected the fallout from recent import price rises to put further pressure on consumer inflation. Its concerns are being compounded by renewed weakness in the value of the euro.
And with Irish inflation figures for June - due to be released next week - expected to show a further rise, the Minister of State for consumer affairs, Mr Tom Kitt, said yesterday that he would meet major retail organisations to urge them to play their part in reducing inflation.
The public exchanges between Mr O'Sullivan and Mr O'Connor followed a private meeting between senior members of IBEC, SIPTU, the Irish Congress of Trade Unions and civil servants on Wednesday to try and clear the air. The meeting was held at IBEC's request.
Neither Mr O'Sullivan nor Mr O'Connor was willing to comment on what happened at the meeting but reliable sources said that IBEC's director general Mr John Dunne and his designated successor Mr O'Sullivan expressed concern over the stance taken by SIPTU over the past few months. They were particularly concerned at what some employers saw as the readiness of Mr O'Connor, recently elected vice-president of SIPTU, to grant strike sanctions to members.
Mr O'Connor is understood to have defended the decisions on the basis the claims did not technically breach the PPF.
Also present at the meeting was ICTU general secretary Mr Peter Cassells, SIPTU president Mr Des Geraghty and the Secretary to the Government Mr Dermot McCarthy. According to informed sources it came to "an unsatisfactory conclusion".
