Agreement on a new pay deal has been sealed. Both the Irish Congress of Trade Unions (ICTU) and the employers' group IBEC have voted at to accept the terms of Sustaining Progress in lunchtime votes.
IBEC director general, Mr Turlough O'Sullivan said the Agreement provides an opportunity for a new beginning in industrial relations.
There had been concerted opposition from unions representing about 150,000 members at today's ICTU special delegate conference but the membership of unions in favour amounted to around 400,000, making the result a foregone conclusion.
The final vote was narrower than expected with 195 delegates in favour and 147 against. However the outcome masks the level of support for the deal because 35 delegates mandated by their members to in favour did not actually vote. Only three 'no' delgates failed to register their vote.
The main concern of unions - both for and against the new offer - is the 7 per cent pay increase over 18 months. Many argue the increase is too low to keep pace with inflation.
The current rate is 5.1 per cent but economists say it will fall. However, with new and increased charges for domestic service such as waste collection the uncertainty over the price of oil because of the war on Iraq, those who argue the deal will keep pace with inflation are on uncertain ground.
Those in favour of the offer, such as the country's largest union, SIPTU, are more focused on the non-pay elements of the proposals, such as the promise of 10,000 new affordable houses and increased statutory redundancy.
Those against are also concerned about the non-pay aspects. Issues such as binding arbitration and a failure to secure significant gains in union recognition are leading some trade unionists to call for a return free bargaining.
It should be noted that the third pillar of the social partners, the Community Platform, last night came out against the proposals and may yet put a spanner in the works of the Government's costing of its contribution to the deal.
The National Equality and Anti-Poverty Action Movement will be launched in the summer in attempt to increase pressure on the Government's social spending ahead of local elections and the framing of Budget 2003.
The farmers, meanwhile, who are also part of the Community Platform are engaged in separate discussions and are looking for considerably more financial support from Government.
Speaking after the IBEC vote, Mr O'Sullivan reflected the confederations's concerns about previous agreements, saying the "spirit and letter" of the news deal must be respected.
Mr O'Sullivan said: "Competitiveness has taken a battering as cost increases in Ireland far outstripped those of our trading partners over the past few years ... . The provisions requiring that the terms be applied taking account of the economic, commercial and employment circumstances of the employment will be a greater feature in the implementation of this Agreement."
While the Taoiseach, Mr Ahern, who did so much to secure the deal, will be delighted with today's votes; he will be aware that farmers and social groups may yet have a nasty surprise in store. And with the three-year deal still requiring further pay negotiations, it should not be taken as given, that Sustaining Progresscan be sustained.