Pay and performance

There is a hint of goalposts being moved in statements by the Taoiseach, Mr Ahern, and the Minister for Finance, Mr McCreevy, …

There is a hint of goalposts being moved in statements by the Taoiseach, Mr Ahern, and the Minister for Finance, Mr McCreevy, on the payment of benchmarking awards. Modernisation and change is still being sought in return for an estimated €1 billion pay increase. But a no-strike element in the package has begun to receive particular emphasis. Industrial peace may be about to take precedence over public service efficiency.

Mr Ahern has also begun to talk about introducing legislation that will penalise civil servants who perform poorly. A Bill being prepared by the Coalition Government would extend the scope of the Unfair Dismissals Acts to cover civil servants. They would become liable to demotion in serious cases of under-performance and be subject to new disciplinary sanctions and cash fines. Such reform is long overdue. But it smacks of a political distraction at a time when the second phase of benchmarking is being paid right across the public service.

Fine Gael's criticism of benchmarking has been supported by the employers' body, IBEC and a number of prominent economists. This value-for-money approach struck a chord with the electorate. And ministers began to use similar language, while committing themselves to paying the 8.9 per cent award.

Civil and public service unions have insisted that contributions are being made by their members through the use of new technology and that new and more efficient work practices are being adopted. But there is a lack of transparency about the process. Last August's "action plan" for the civil service, which purported to show what was being done in return for the money, did not impress.

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Industrial peace may turn out to be the main benefit that can be secured from benchmarking. If so, it comes at a high price. The generosity of the terms will exert long-term pressure on the public finances. Mr McCreevy confirmed the Government would honour benchmarking yesterday. But payment, he said, would be dependent on compliance with the terms of the agreement.

The Taoiseach was more direct. Referring specifically to threatened industrial action at Aer Rianta over plans to break up the company, he said: "We have a guarantee of industrial peace right across the public service. Industrial action will lead to non-payment of increases."

Teachers, hospital workers and a number of other groups threatened industrial action in recent weeks. They now know that strike action will result in abrogation of the agreement and the loss of pay awards. It is a pity the same clarity has not applied to programmes for public service modernisation and change.