Government invites unions back to talks on economy

The Government has invited the unions back to talks on an economic recovery plan, it emerged this afternoon

The Government has invited the unions back to talks on an economic recovery plan, it emerged this afternoon. Peter McLoone, the head of Impact, the country's largest public sector union, said the Government had written to union leaders earlier today.

Mr McLoone said the communication involved an invitation to unions to re-engage with other social partners on talks on an economic recovery programme.

In the letter from the Taoiseach to David Begg, the General Secretary of the Irish Congress of Trade Unions (Ictu), Brian Cowen said there was a "overwhelming case" for an "integrated national response" to what he said was a "very grave" and "deteriorating" situation.

Referring to the "considerable merit" in the ten-point plan put forward by Ictu, the Taoiseach said he was satisfied shared analysis between this and the framework agreed between the Government and the social partners provided a "strong basis for believing it would be possible to conclude a National Agreement".

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Mr Cowen said he therefore wanted to invite "as a matter of urgency" Ictu and the other social partners to secure a national agreement. The Taoiseach added he hoped this invitation would mean Ictu would not proceed with its planned national protest on Monday.

Mr Begg said in a statement he welcomed Mr Cowen's letter "proposing talks aimed at achieving an integrated national response to the current recession". He said he would put the letter before the executive council of Congress tomorrow.

Mr McLoone of Impact warned if the council decided the letter was "not meaningful", the protests on Monday would go ahead.

The business group Ibec also welcomed the invitation by Mr Cowen.

Director General Turlough O'Sullivan said: "The country is facing a serious economic crisis and a collective national response is required. There is an urgent need to put in place agreed measure to secure the economic viability of the country and protect the maximum number of jobs.

"We should all be working together in the national interest and sending out a positive signal to the international community that we are capable of solving our problems in a constructive and non-adversarial manner.

He called for the immediate cancellation of the Ictu day of action next Monday.

“There is a belief that there is a willingness by all sides to re-engage in the national interest,” said a Government spokesman. Government sources believe roundtable talks may be in a position to begin at Government Buildings before the weekend.

The central executive council of Impact met today after its 62,000 members narrowly failed to approve participation in Monday’s national day of action.

While a total of 65 per cent of members who voted in the ballot on industrial action were in favour of taking part, a two-thirds majority is needed to pass any motion under union rules.

Following the meeting, Impact said it cannot instruct its members to take industrial action, but the union said it is committed to protecting any member who refuses to cross a picket line from any sanctions by management.

The executive council of Ictu is expected to decide tomorrow on efforts to restart social partnership talks in advance of the wave of strikes on March 30th.

The strikes were called Ictu in protest at the Government’s handling of the economic crisis.

The Unite trade union last night released an expanded list of companies and organisations on which it intends to place pickets on Monday. These include New Ireland Assurance, Enterprise Ireland, Glaxo Smithkline Beecham, the Health Service Executive, the National Standards Authority of Ireland and Aer Lingus.

On Sunday the employers’ group Ibec offered to enter into direct talks with trade unions on a new economic recovery programme.

It said that any new deal would have to involve a pay pause of a significant duration but, significantly, it appeared to soften its position that wage increases agreed in partnership talks last autumn should be deferred indefinitely.

Ibec signalled it would not stand in the way of any employer that was in a position to pay the increases under the deal on a voluntary basis. It also called on Ictu to call off the planned strikes.

On Sunday Siptu president Jack O’Connor described the Ibec initiative as “a positive development”.

However, at a meeting yesterday, the private-sector committee of Ictu appeared to take a harder stance. Its chairman, Jerry Shanahan of Unite, said the Ibec invitation to unions had carried preconditions such as the lengthy pay freeze.

The committee, which comprises senior representatives of private-sector unions, said the industrial action next Monday was part of a campaign targeting “rogue employers” who refused to either pay the terms of the national agreement or to engage with unions.

Large parts of the public sector, including schools and health sector facilities, are likely to be affected by the planned strikes.

All four teaching unions have voted to take part in the action, which is set to lead to the closure of thousands of schools. Health sector unions are also to take part, although they have stated that essential services will be provided.

Transport services are also likely to be hit. Siptu announced on Sunday the three State airports at Dublin, Cork and Shannon were likely to be closed on Monday morning as staff had voted to take part in an eight-hour stoppage.

Services at Dublin Bus, affecting nearly 500,000 passengers, could be hit by a separate dispute from this weekend if management proceeds with plans to implement controversial cost-cutting plans without agreement

Martin Wall

Martin Wall

Martin Wall is the former Washington Correspondent of The Irish Times. He was previously industry correspondent

Jason Michael

Jason Michael

Jason Michael is a journalist with The Irish Times