The Government and social partners have reached an outline agreement on a new national pay deal, proposing a 6 per cent pay rise over 21 months with a final 1/2 per cent rise for lower paid workers at the end of that period.
After an 18-hour marathon of talks overnight, the partners have reached the basis for an agreement, but unions and employers are still sounding a cautious note.
Taoiseach Brian Cowen said the Government supported the deal on the table, given the wider economic and social benefits of a national agreement. Employers' group Ibec said, however, it would put the draft deal to its members and that it could take several weeks to reach a final decision.
If the outline deal now on the table is agreed, workers would be awarded a 6 per cent pay rise over 21 months, in tranches of 3.5 per cent and 2.5 per cent, with a final 1/2 per cent at the end for the lower paid.
There would also be a three month pay pause in the private sector and an 11 month pay pause in the public sector.
Speaking before a cabinet meeting this morning, Taoiseach Brian Cowen said the Government would also introduce a new framework to prevent the use of temporary agency workers to break strikes and lockouts.
Other initiatives include the introduction of a statutory prohibition on the victimisation of employees based on their membership or non-membership or activity on behalf of a trade union, and on incentivising non-membership of trade unions.
Provision would also be made for pensions under the EU's Transfer of Undertakings directive, where an employee is legally transferred from one employer to another.
Pension provisions are not currently covered by the directive.
In a statement, Mr Cowen said: “A national pay agreement will give a sense of confidence and stability in the challenging period ahead. The negotiations were very lengthy and complex and the social partners made commendable efforts to enable the terms of a draft agreement to be identified.
"The terms of the agreement are supported by Government given the wider economic and social benefits of a national agreement."
Tánaiste Mary Coughlan, TD, welcomed the draft agreement saying it would "provide the necessary strong protection for employment standards, while also providing a much-needed boost to enterprise."
Emerging from the talks, Ibec director general Turlough O’Sullivan said it may now take several weeks to take soundings on the draft and to make a decision which was the right course of action for the country.
“It’s a matter now for the membership of all the organisations to consider the draft,” he said.
“That’s what it is, it’s a draft. But it was the best the parties could do under the circumstances. There are pluses. It sends out a positive signal to the investment community at home and abroad and it keeps the process intact.
“Hopefully this draft agreement will give us some breathing space to confront the very serious difficulties that the economy is facing. The architecture of the agreement is capable of responding to whatever needs an organisation has in terms of their commercial and economic circumstances.”
Mr O’Sullivan added: “The next step is for ourselves, employers and trade unions and government to consider the draft to consult widely and to take soundings from our members and to make a decision which could take several weeks that this is the right course of action for the country.”
Asked if the draft agreement was close to what he had hoped for, he said: "It gives us a pay pause which is necessary in terms of the public finances and which helps taxpayers there has been considerable commitment from the public service sector to drive the reform package.”
Ictu general secretary David Begg said he felt 'huge relief' just to get out of the building when he emerged from the talks shortly after 12.30pm.
He said the draft agreement represented the best efforts of negotiators over a very long period of time.
"If we were to stay there until next Christmas we couldn't achieve more by negotiation so it's open to democracy now to decide," he said.
"Everyone in the trade unions in the country will get a vote on this. It's a very extensive process which will unfold over the next few weeks and months."
He added that he was personally very disappointed that the pensions agenda was not moved forward.
"I think the enormity of the pensions problem that the country is facing by virtue of its changing demographics and by virtue of the holes that are in existing occupational pension funds is quite enormous," he said.
"And some day at some stage it will have to be grabbled with and the Irish people and the government will have to confront the reality of that. I would like to do it sooner rather than later but you can only do what you can do and we haven't managed to push it beyond the regime set out in the current agreement."
Mr Begg said he was confident his members would accept the deal.
"My experience is that the people of Ireland is are very reasonable, rational people and when they take time to study things they usually make the right decision whether that's to reject it or to accept it."
He added: "The only time they make the wrong decision generally is when they don't have the right information available to them."
Mr Begg said it would take 4 to 6 weeks for trade unions to study the document and take votes on it.
Issues such as pay were still being thrashed out until early this morning and senior union officials and employers' leaders met face to face at about 4.30am.
Mr Cowen met trade union leaders and employers' representatives shortly after 8pm last night. He advised the parties that the world economic situation had changed even since the start of the resumed process nine days ago and urged them to be realistic in their approach on pay.
The 11-month pay pause for staff in the public sector was proposed by the Government in July and was expected to remain in any draft agreement.
The Construction Industry Federation (CIF) still had some concerns about the outline document and met the Taoiseach to discuss it this morning.
The director general of the CIF, Tom Parlon, said the body would be referring the draft deal to its members.
He said there were "positives and negatives" in the outline document drawn up last night and he expressed concern in relation to the pay element in an industry under pressure.
Asked if he would be recommending the deal to CIF members, Mr Parlon said he would be referring the proposals to them and letting them decide on it.
