Calls for better services, tax cuts, full employment and a restoration of public service pay and pensions are understandable. But their sudden delivery would recreate the bad old days of 2008, with an economic downturn, widespread poverty and falling living standards.
State revenues cannot meet the demands being made by public sector unions, while claims by private sector unions threaten competitiveness. This is the abyss that former Department of Finance secretary general John Moran has warned against.
It is hard for trade union leaders to exercise restraint when other groups of workers are seen to profit from aggressive tactics. But that is necessary if the economic recovery, at present in a healthy if uncertain state, is to be sustained.
A free-for-all in wage demands across public and private sectors would be extremely ill-judged in light of the uncertainties generated by Brexit and the election of Donald Trump. The Lansdowne Road Agreement, in spite of its flaws, offers the best hope of moderating pay expectations and finessing industrial relations difficulties.
Threats of illegal strikes by members of the Garda Síochána brought us to this point. It doesn’t bear thinking about: oath-bound guardians of the peace willing to prioritise their wage demands above law and order. Those strike threats brought a €50million offer from the Labour Court that has stretched industrial peace and the Lansdowne Road Agreement to breaking point.
The fact that gardaí were not parties to the agreement made this special treatment all the more objectionable to compliant public sector unions. As for gardaí being badly paid: last September more than 20,000 young people applied for 800 trainee positions.
This minority Government is incapable of taking difficult, unpopular decisions. Divided internally and relying on Fianna Fáil for Dáil support, it is vulnerable to collapse. Where the Lansdowne Road Agreement is concerned, however, both Fine Gael and Fianna Fáil agree it is “the only game in town”.
Because of that, Minister for Expenditure and Reform Paschal Donohoe is willing to hold early talks concerning a replacement deal, if not on pay and pension restoration.
The public service pay commission has a vital role to play. It was asked to compare Irish public pay and pensions with European norms and with the private sector here. Such detail would provide a socially-just playing pitch and the Government should not negotiate a Lansdowne Road replacement without this information.
At a time when private pension schemes are being eviscerated, the value of defined benefit public pensions must be recognised, along with the extraordinary generous treatment of retired members.
Pay is just one element of a package designed to ensure Irish competitiveness is maintained and quality of life for all citizens is improved.