Row brewing over section of pay review

The section of the pay review in the Programme for Prosperity and Fairness, over which a major row between employers and unions…

The section of the pay review in the Programme for Prosperity and Fairness, over which a major row between employers and unions is looming, reads as follows:

"Employers and trade unions shall negotiate a further change in rates of pay of 2 per cent of the basic pay of the group of employees concerned, as it applies in each employment or industry, with effect from April 1st, 2001, subject to the provisions of the following paragraphs.

"The parties shall also negotiate a once-off lump-sum payment equal to 1 per cent of basic pay, as it applies in each employment or industry, to be implemented on April 1st, 2002, subject also to the following paragraphs.

"Clause 1 of the pay agreement commits the parties to full and ongoing co-operation with change, flexibility and to increasing productivity and employment. Negotiations in relation to the above element will take full account of the implications for competitiveness and employment and the need for flexibility and change.

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"This element shall not be pursued through industrial action of any kind. Any dispute about it shall be referred to the Labour Court as provided for in Clause 12, whereby the parties agree to comply with the court's findings . . .

"Clause 7 provides a mechanism to recognise difficulties employers may have in meeting the pay terms of the PPF and enables employers to claim inability to pay. In the context of these stability-enhancing measures, particular regard must be had for a number of circumstances where competitiveness and employment are at risk, including:

"Employments in vulnerable sectors; Employments where wage costs, within the terms of the PPF, have increased significantly; Employments experiencing economic and commercial difficulties and/or those who may be adversely affected by changes in exchange rates;

"Employments where pay costs have increased significantly above those implied by the terms of the agreement."