Unions warn on pay bargaining

The leaders of two of the State's main private-sector trade unions have warned the Government there can be no new national agreement…

The leaders of two of the State's main private-sector trade unions have warned the Government there can be no new national agreement without greater flexibility on local pay bargaining and firm commitments by employers to profit-sharing.

The MSF national secretary, Mr John Tierney, and the IBOA general secretary, Mr Kieran Ryan, who represent more than 30,000 workers in the financial services, technical, scientific and craft areas have severely criticised the constraints imposed on wage increases by Partnership 2000. They say these take no account of the huge profits generated by many companies.

Mr Tierney has called for cost-of-living increases for all workers in any new agreement to protect the low-paid. He estimates this would be worth between 2 and 3 per cent a year.

On top of this there should be room for about 5 per cent to be negotiated locally. Such payments could take the form of wage rises, gain-sharing agreements, extra leave days, shorter working hours, enhanced pensions or permutations of all these options.

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"`Profits in the private sector are growing in excess of 10 per cent per annum, after inflation, while executive salaries are growing at over 7 per cent per annum," he said. Productivity was increasing at 3 per cent across the economy and by 10 per cent in manufacturing.

Mr Ryan, who represents 11,000 bank officials, estimates that his members generated between £48,000 and £50,000 each for their employers last year.