The process of beginning the reversal of pay cuts put in place for 300,000 public service staff over recent years will begin today when Government representatives hold their first round of talks with trade unions.
On foot of the new process staff are expected to receive a boost in earnings as a result of changes to the application of the public service pension levy which was introduced in 2009.
Trade unions will press for a flat-rate increase in pay as this would disproportionately benefit the lower paid.
The Irish Times reported last week that the Government was expected to earmark between €250 million and €300 million for pay restoration. This would see public services staff receive on average more than €800 each.
It is understood that exempting the first €27,000 from the scope of the pension levy would generate a boost in earnings of about €800 for employees.
‘Fiscal space’
The process is expected to get under way today with a briefing from officials of the
Department of Public Expenditure and Reform
outlining the “fiscal space” the Government has for a deal on public service pay.
Next week the talks are expected to move on to working on the text of any new deal. However, the issue of pay is not expected to be addressed until later in the month.
Senior figures close to the process have suggested the aim is to have the negotiations completed by the end of the month to allow for unions to ballot in June.
This would be important, for example, for the Irish National Teachers Organisation as it would allow its members to vote on the outcome of any deal before the end of the primary school year.
Budget plans
Other unions such as Siptu and Impact would also be able to complete ballots before the end of the July in time to allow the Government to know in broad terms whether any agreement was likely to be accepted before beginning the finalisation of its budget plans for 2016.
However, that outline timetable could become more complicated if other issues force their way onto the agenda.
Siptu suggested at the weekend that it would be seeking commitments against privatisation.
Unions have already ruled out the provision of further productivity measures in return for pay restoration.
