Main points of the Government's proposal

The seven point plan proposed by the Government in an attempt to break the deadlock in discussions on the new national partnership…

The seven point plan proposed by the Government in an attempt to break the deadlock in discussions on the new national partnership deal is as follows -

  • Pay Terms:

The Government recommends that the pay agreement should provide an increase of 7 per cent over 18 in the private sector. To be implemented as follows, 3 per cent during the first 9 months, 2 per cent after 15 months and a further 2 per cent after 18 months.

  • Public Service Pay:

The same terms would apply to the public service except for an initial 6 month pay pause. Public workers would get an increase of 3 per from January 1st 2004, 2 per cent from July 1st 2004 and a further 2 per cent from December 1st 2004.

The bench-marking report awards would be implemented as follows, 25 per cent would be backdated to December 1st 2001, 50 per cent from January 1st 2004 and 25 per cent from June 1st 2005.

READ MORE
  • Statutory Minimum Wage:

The statutory minimum wage would be increased from €6.35 per hour to €7 per hour with effect from February 1st, 2004.

  • Statutory Redundancy:

Statutory redundancy payments would be increased to two weeks pay per year of service for all workers regardless of age. At present, workers receive only a half-week's pay for each year under the age of 41, and a week for each year after that.

  • Housing:

Funding from the National Development Finance Agency has been promised to help increase the supply of affordable housing.

  • Representation:

The Government would also propose legislation to better the procedures by which unions can represent their members' interests.

  • Inflation:

Finally, the Government would develop, with the social partners, a new anti-inflationary initiative targeting sources of inflationary pressure.