Talks to continue as unions reach pay agreement

Talks on a new national partnership programme are set to continue into next week, but the basic pay elements of a deal have been…

Talks on a new national partnership programme are set to continue into next week, but the basic pay elements of a deal have been finalised, writes Chris Dooley, Industry and Employment Correspondent

Union leaders have reacted favourably to the 10 per cent increase over 27 months negotiated in talks at Government Buildings in Dublin, which concluded yesterday.

But they want proposals concerning pensions to be strengthened before agreeing to put an overall deal to their members for ratification.

Further talks on the pensions issue, as well as the wider social aspects of a new agreement, are to take place over the coming days, but there are no plans to meet over the bank holiday weekend.

READ MORE

If formally ratified, the deal on pay would give workers increases in four phases over two years and three months. The initial percentages discussed were adjusted during negotiations on Tuesday night, so increases will apply as follows:

initial rise of 3 per cent;

2 per cent after six months;

2½ per cent after further six months;

2½ per cent after further six months, to cover final nine months of agreement.

Workers earning up to €10.25 an hour are to receive an additional half per cent increase after the first six months, giving them a 2½ per cent rise at that point.

Payment dates vary for workers in different sectors, and some in the private sector will have their increases backdated to January 1st. The current public sector pay deal expires at the end of this month.

The pay deal was hailed as "among the best ever" by Irish Congress of Trade Unions president Peter McLoone, who led the Ictu delegation in talks with the Government and employers.

He said an employment rights package now being finalised as part of the overall agreement was also a "massive achievement".

The package includes six-figure fines for companies that try to dodge employment laws by failing to keep proper records and new measures to stop firms sacking staff to replace them with cheaper labour.

Irish Business and Employers Confederation director general Turlough O'Sullivan said the proposed deal was "at the very limit of what the country can afford".

But he said Ibec would recommend the proposals to members as "the best that can be achieved at national level", subject to agreement on outstanding matters, including measures to assist sectors of industry experiencing particular competitive pressures.

Ictu general secretary David Begg said members of the organisation's executive council, which met yesterday to consider the proposed deal, had expressed disappointment at the proposals on pensions.

Unions had sought mechanisms to force employers who move to downgrade staff pension schemes to have their plans subjected to independent assessment.

Instead, the Government has proposed a number of what unions see as weaker measures. These include the referral of disputed cases to the National Implementation Body and the establishment of a partnership group to look at pensions issues.

Mr Begg said Ictu was seeking to renovate the measures proposed and "make them more robust".

Mr O'Sullivan said Ibec would not agree to anything that would restrict "what an employer can do to maintain the stability and proper funding of [ pension] schemes".