Trade union leaders said today they had made clear to the Taoiseach the difficulties posed by measures in the Budget to the social partnership process.
Speaking after a meeting with Brian Cowen in Government Buildings today, Siptu leader Jack O’Connor said they had pointed out their concerns that the Budget disproportionately affected low- and middle-income groups.
He said unions had indicated the implications of this on the social partnership process and the long-term interest of the economy. Asked whether they had received any concessions from Mr Cowen, Mr O’Connor said that they had not expected to see movement today but that they had gone to the meeting to set out their concerns.
Mr O’Connor said the Taoiseach had set out the Government’s rational for the Budget. He pointed to tax benefits that had arisen for the workers from the social partnership process and that the country faced changed economic circumstances.
A Government spokesman said the meeting was “useful” and that both sides would reflect on the issues.
Arriving at Government Buildings this morning, Ictu general secretary David Begg said that the Budget had placed the trade union movement in a difficult if not impossible position. He said it has been unfair, although he accepted that some necessary economic corrections have had to be made.
Mr Begg said that the additional half per cent provided for low-paid workers in the new national pay deal had effectively been wiped out by the 1 per cent income levy introduced in the Budget.
He again warned of the danger that trade union members could vote against the new deal in ballots currently under way if they used their vote as a referendum on the Budget. However, Mr Begg cautioned union members that if they rejected the pay deal, they would still be stuck with the Budget and its unfairness.
He suggested that a better deal might not be possible to negotiate at local level with employers. Mr Begg said he was raising with the Taoiseach the issue of withdrawal of automatic medical cards for the over-70s, eduction cuts, and the 280 job losses at Waterford Crystal.
He said that the State guarantee of a loan sought by the company had been rejected as it would set a bad precedent but that now the banks had been bailed out, and no one was worrying about precedent.
On the medical card issues, Mr Begg said the trade unions would be seeking a review of the thresholds. However, he said, there was a "hell of a difference between people being very rich and those having €240 a week." - the current Government threshold for qualifying for medical cards.
