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News Summary:
If ratified, the proposed pay deal reached in the early hours of this morning (Wednesday) will help stabilise the economy and protect incomes in a difficult economic period, according to the country’s largest public service trade union.News Content:
Speaking at the close of negotiations, IMPACT general secretary Peter McLoone said the proposed deal, worth 6% over 21 months with an extra 0.5% for low paid workers, entailed a special sacrifice from public servants in the form of an 11-month pay freeze.
But he said it was the best deal available in the current economic and financial climate. “Most public servants understand the prevailing economic realities and want to protect services in a time of tight public finances,” he said.
Mr McLoone added: “In a volatile economic period, it’s very difficult to confidently predict inflation. But the reality is that public servants’ pay is unlikely to keep pace with inflation in the first year of the agreement, although it is likely to do so in the second year. But I believe most public servants value the services they provide to the public very highly and understand the implications of rising unemployment and falling Government revenues.”
Most current predictions suggest that inflation will be in the region of 4.5% for the year to 31st December 2008, and around 3% in 2009.
Representatives of IMPACT branches will meet in Dublin tomorrow (Thursday) to discuss the proposed deal. The union’s executive then meets on Thursday 25th September when it will likely make a recommendation to IMPACT members in advance of a national ballot. “I will be telling our branch representatives that this is the best deal available in the current economic climate and that it represents a tangible and responsible contribution to dealing with the challenges we face as workers, as public servants, and as a nation – including protecting employment and living standards,” he said.
The deal’s low pay provisions apply to workers earning less than €11 an hour.
The package also contains a Government commitment to early legislation to tackle victimisation of union members in non-union companies. The new legislation will also stop anti-union employers offering “inducements” aimed at forcing people to give up their union membership.
It also sets out a package of public service modernisation proposals. This includes a reiteration of commitments to modernisation and change set out in Towards 2016, including the development of a more customer-focussed approach to public service delivery. There’s also a commitment to the implementation of the principals set out in the recent OECD report on Irish public services and an undertaking by all parties to participate in the Health Forum, which was established to agree ways of improving health service delivery, including through the development of new working practices.
