Government to brief unions and Ibec on economy at special meeting today

THE GOVERNMENT is to brief unions and employer representatives on the state of the economy at a special meeting today.

THE GOVERNMENT is to brief unions and employer representatives on the state of the economy at a special meeting today.

The move will be the first formal contact between the Government and the unions since the collapse of talks on an agreed economic recovery programme a month ago.

Informal contacts have been ongoing for the last week or so between senior union figures and Government representatives about the possibility of a resumption of talks on a social solidarity pact for economic recovery. However there has been no indication to date that any such negotiations would recommence.

Government sources last night denied that the economic briefing today would represent a step towards the resumption of talks with the unions.

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They said the social partners were being offered the same briefing by the Department of Finance on the economy as had been provided to the Opposition parties yesterday.

The Government has said consistently over the last week or so that it does not believe there is a basis for formal dialogue with the social partners at this stage.

Employers’ group Ibec will also attend the briefing by the Department of Finance on the economic situation today.

A similar briefing for farming organisations and the social and community pillar will be scheduled later.

The talks between the unions and the Government broke down a month ago over the introduction of the controversial pension levy for about 300,000 staff in the public service. The unions have sought measures such as additional taxation to provide a balance to the levy and to ensure that all sectors are contributing to the recovery effort.

One senior union figure said yesterday that the Government’s acceptance that additional taxation measures would be necessary as part of the new supplementary budget in the weeks ahead to improve the public finances was “helpful”.

However, he said while contacts with the Government were continuing there was no agreement on a resumption of formal talks.

Both unions and the Government are conscious that if formal talks resumed and subsequently broke down again it could have serious implications both for the social partnership process and possibly for the country’s reputation internationally.

One union source said yesterday that talks were unlikely to resume unless both sides believed the basis for a deal existed.

Unions are currently balloting members on a one-day strike scheduled for the end of March in sectors where the national pay deal, agreed last autumn, has not been implemented or an alternative put in place. Such a stoppage, if it went ahead, would affect the public sector and significant parts of the private sector.

Last week Ibec called for the Government, the main Opposition parties and the social partners to agree on a national recovery plan.

Martin Wall

Martin Wall

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