Comments by Fine Gael on pay talks are ‘unhelpful’, says Labour

Comments from Fine Gael politicians suggesting that any reversals to public sector pay cuts must be accompanied by measures to increase productivity have been described as unhelpful by senior figures in the Labour Party.

Both Minister for Jobs, Enterprise and Innovation Richard Bruton and Minister for Health Leo Varadkar said any public sector pay deal must include reforms to work practices.

Minister for Public Expenditure and Reform Brendan Howlin is preparing to start talks with public sector union representatives seeking a reversal of emergency pay cuts implemented during the financial crisis.

Reform

Senior figures in Labour said preparatory work on the talks was already under way and described the comments by Mr Bruton and Mr Varadkar as “not helpful”, with one source claiming it was ironic “that the

Department of Health

is talking about reform, when it has been resistant to reform”.

“They weren’t there when we were reducing pay rates,” the source said, insisting reform measures would be included in any deal. However, reform proposals were not specified. “We are not going to be putting up things now to see them knocked down.”

In a statement, the Department of Public Expenditure said: “Please note that the public service in the last few years has undergone an unprecedented level of workplace reform.

“Public service productivity has been boosted through additional workplace hours, new shared services, unprecedented redeployment of staff, a 10 per cent reduction in numbers, reforms of sick and annual leave and so on.

Industrial relations

“The Government has an ongoing reform agenda for the civil and public service which will continue to be underpinned by having an industrial relations agreement with the unions.”

Separately, another Labour source claimed the Department of Public Expenditure and Reform was the driver of "productivity" and that no lessons were needed from Fine Gael.

Over the weekend, Mr Varadkar said: “The time has come for pay restoration but we don’t want to lose the productivity gains from Croke Park and Haddington Road. If anything, we’d like more. A lot of systems and work practices are still outdated.”

However, sources close to Mr Varadkar insisted that he was following language which had already been used by Labour Ministers and Minister for Education Jan O’Sullivan in particular.