Thousands of private sector workers are in line to receive pay increases this month of just over 5 per cent following yesterday's decisions by unions and employers to ratify the new partnership programme.
Delegates to a special conference of the Irish Congress of Trade Unions (Ictu) in Dublin voted by a big majority - 242 in favour and 84 against - to accept the 10-year agreement Towards 2016.
The main employers' body, Ibec, announced that its members had also accepted the deal, which was negotiated by the social partners and the Government earlier this year.
As well as a 10-year social and economic strategy, the agreement includes new measures to uphold labour standards and a 10 per cent pay increase for workers in phases over 27 months.
Public servants will receive the first-phase increase of 3 per cent on December 1st, but a large proportion of private-sector employees will have their pay rises backdated to January 1st.
They will receive a 3 per cent rise from that date, as well as a further 2 per cent increase due to them since July 1st, giving them a cumulative increase of slightly over 5 per cent.
However, some delegates to yesterday's Ictu conference expressed concern that the pay increases might not keep pace with inflation.
There were also several calls for unions to engage in concerted action to prevent employers from downgrading pension schemes.
The agreement includes a commitment by the Government to engage with unions and employers in drawing up a comprehensive policy on pensions. It is also to publish a Green Paper on the issue.
Irish Bank Officials' Association president Colman Moore said pensions had been a key issue in the latter stages of the partnership talks, but what had emerged in the agreement had been a "major disappointment".
"Even the proponents of the deal have publicly stated the section on pensions is extremely weak," he said, after informing the conference that IBOA members had voted by nine-to-one to reject the agreement.
However, Public Service Executive Union general secretary Dan Murphy reflected the majority view when he said opponents of the agreement had failed to put forward a better course of action.
Technical, Engineering and Electrical Union leader Owen Wills said the employment standards provisions of the agreement addressed issues of concern to workers in the construction and electrical sectors.
Two large unions, Mandate and the Irish Nurses' Organisation, decided not to attend the conference. Mandate withdrew from the partnership process in order to pursue a "go-it-alone" pay strategy on behalf of low-paid retail workers, while the INO has reserved its position pending a Labour Court recommendation on a pay claim.
Ibec director general Turlough O'Sullivan said the pay terms were at the higher end of what was appropriate for the Irish economy. "However, business and employers have agreed to the programme on the grounds that it will deliver stable economic development, industrial peace, real reform in the public sector, increased productivity and practical measures to assist the manufacturing industry."
Welcoming the decisions of both Ibec and Ictu to ratify the agreement, Taoiseach Bertie Ahern said the Government would prioritise implementation of the deal.
Meanwhile, contacts have been renewed between farm organisations and the Government on the agricultural elements of the agreement after talks were adjourned without agreement during the summer.
Towards 2016: the pay provisions
Workers covered by the new 27-month pay deal will receive these increases:
• An initial increase of 3 per cent (the start date for this first phase varies from one employer to another);
• 2 per cent after six months of the deal (additional 0.5 per cent for those earning €10.25 or less per hour);
• 2.5 per cent after a further nine months;
• 2.5 per cent after a further six months to cover the final six months of the agreement.
Public sector staff will receive the first increase of 3 per cent on December 1st, followed by increases on June 1st, 2007, March 1st, 2008, and September 1st, 2008.
Payment dates in the private sector vary, but a large proportion of workers will have the initial increase backdated to January 1st, meaning the second increase of 2 per cent (or 2.5 per cent for the low-paid) is already due.
