Employers and unions were last night closing in on a pay deal that would give workers a 10 per cent pay increase in phases over 27 months. Tense negotiations over several key issues, however, were continuing late into the night at Government Buildings, writes Chris Dooley, Industry and Employment Correspondent
In particular, a row over pensions threatened to derail the prospects of a deal as the parties began a final push to conclude negotiations that began in early February.
However, the presence at the talks for the first time of Taoiseach Bertie Ahern, Tánaiste Mary Harney and Minister for Enterprise Micheál Martin indicated that a deal was close.
The three were in direct discussions with the parties in an attempt to finalise an agreement.
As the final touches were being put to a deal on pay, increases of the following order were anticipated:
r initial increase of 2 per cent;
• 3 per cent after six months;
• 2 per cent after six further months;
• 3 per cent after six further months to cover the final nine months of a 27-month agreement.
Payment dates vary for different groups of workers, but the first increase in the public sector would come into effect on July 1st.
Increases of this order would be significantly higher than the "low single figures" talked about by the employers' body Ibec before the talks.
Ibec also wanted a much longer deal, insisting this week that it should run for at least 34 months to give long-term stability.
However, unions were also asked to make difficult compromises to achieve a deal. Their demand for a local bargaining clause, which would allow unions to pursue "top-up" pay increases from highly-profitable employers, was not going to be conceded.
Employers were also resisting the Irish Congress of Trade Unions' insistence that the deal should include a "flat rate" increase for the low-paid. This would have given those on the minimum wage and slightly over a guaranteed weekly increase of perhaps €20 rather than a percentage rise.
It seemed more likely, however, that employers might accept a small additional percentage increase for low-paid workers.
Ictu wanted a provision making it more difficult than it is for employers to downgrade pensions schemes, ie from defined benefit to defined contribution schemes.
It argued that unions should be able to have such moves subjected to an independent assessment.
Ibec vigorously opposed this demand, however, and the issue remained unresolved last night.
A significant element of the emerging deal was the finalisation of measures to underpin employment standards.
A range of provisions in this area had already been agreed in protracted negotiations which preceded the talks on pay.
They include new legislation to deter employers from making people redundant to replace them with cheaper labour, and penalties of up to €250,000 for breaches of employment law.
It is understood union concerns about outstanding aspects of this package were being addressed by Mr Ahern and his colleagues last night.
The intention was that a deal on pay would form part of a 10-year social partnership agreement to succeed Sustaining Progress.
Negotiations on the social and farming aspects of an agreement have also to be concluded.