THE EXECUTIVE council of the Irish Congress of Trade Unions (Ictu) is to meet today to consider a framework document for the basis of talks on an economic recovery programme.
The final elements of the document were being put together by Government officials last night and will be presented to social partners early today.
Union sources indicated that the document had “the ingredients of a social solidarity pact”.
It is expected to include a number of headings including economic analysis, taxation, employment, public finance and the banking sector.
Leaving Government Buildings last night, Ibec director general Turlough O’Sullivan said he believed it contained sufficient flexibility and common sense that with goodwill, the parties could come out with an agreement.
It has also emerged that the Construction Industry Federation may participate in the talks on the new framework document.
The federation had indicated to the Government that it would pursue its claim for a 10 per cent wage cut through the social partnership process.
Mr O’Sullivan said yesterday that trade unions and employers will have to share the pain if an agreement resulting in the Government achieving the desired €2 billion in public sector cuts is to be reached.
He said the pain resulting from the yet to be finalised cuts is going to have to be shared by everybody and that it is likely to be “very severe”.
Mr O’Sullivan said he has taken a 6 per cent pay cut and that payments to other staff in the employers’ confederation have now been frozen. He also said that subscriptions from Ibec members will not rise this year and are also unlikely to increase in 2010.
“Enterprise is already under awful stress, struggling to compete, struggling to retain as many jobs as possible. The answer to our problem is not to put an extra burden on enterprise.”
Ictu general secretary David Begg yesterday wrote to Mr O’Sullivan to say he was “somewhat surprised and disappointed” by a call from Ibec to postpone pay increases for workers for at least 12 months.
“If Ibec proceeds to detach itself from the process in the manner suggested in your letter, then it will make it very difficult to establish any form of a social solidarity pact,” Mr Begg wrote.
“There is no benefit to congress in engaging in the current talks. We are only doing so because it is the right thing to do for the country at this time – however cynically such sentiments might be regarded in some quarters,” he continued.
Mr O’Sullivan said that despite Ibec’s call for a deferral, it remains committed to social partnership. He said he has invited union leaders to meet representatives of businesses to discuss the problems they face.
He also said broadening the tax base might be necessary, but warned that it was important that such a move does not increase the burden of personal or corporate tax. He added that the level of public spending should be examined.
Chambers Ireland chief executive Ian Talbot also said pay rises should be deferred and that action needed to be taken to get the public finances back on a sound footing.
He said it was time for more specific proposals to be laid out on the negotiating table and that if a deal cannot be reached through agreement, the Government should take the lead.