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In a letter to ICTU general secretary David Begg, Taoiseach Brian Cowen said: “I see considerable merit in many aspects of the ten point plan put forward by Congress” and “I am satisfied that this shared analysis and our shared objectives provide a strong basis for believing that it would be possible to conclude a national agreement.”

Speaking after the ICTU meeting, David Begg said the talks would be difficult, but there was a reasonable chance of success if the ICTU ten-point plan was central to the discussions. 

You can read the full text of the Taoiseach’s letter HERE.

The Taoiseach’s invitation follows extensive ‘behind-the-scenes’ work by senior ICTU representatives, including IMPACT general secretary Peter McLoone who has insisted that changes to the pension levy must form part of the negotiation. IMPACT also wants an agreed framework to deal with budget shortfalls in various sectors of the public service and state agencies.

The unions, employers and Government share the objective of concluding an agreement before the Budget announcement on 7th April. Talks are expected to begin this weekend.

While unions accept that the current economic crisis will demand substantial sacrifices, ICTU will use the negotiations to push its objective of a ‘social solidarity pact.’ This would mean that, while everyone would be expected to make a contribution to economic recovery, the wealthy would bear the biggest burden - including in the area of taxation.

ICTU general secretary David Begg said  he would be seeking a relaxation in the 2009 budget cuts in order to preserve employment. "If the Government tries to cut too quickly or too deeply the cure will be worse than the disease," he said.

The worsening economic crisis, which will make the talks extremely difficult, means that the budget is bound to include measures that reduce living standards and public service programmes. But ICTU believes that it is important to be in the social partnership process in order to shape the outcome in the interests of working people.

ICTU agreed to defer the 30th March day of action because one of the key objectives of the strike was to get back into a social partnership framework.

The recently-published analysis of the economic crisis by the National Economic and Social Council (NESC) will inform the talks. The NESC report says that the failure to address all aspects of Ireland’s economic crisis at the same time has fuelled “confusion” and a sense that some groups are “bearing the largest burden of adjustment.”

It says Ireland must deal with separate but related crises in banking, public finances and the economy, as well as social and reputational crises. It called for an integrated national response based on social solidarity.

In its stark analysis of the depth of the recession, the NESC says: “Our analysis strongly suggests that a series of partial and sequential measures, some of which are undoubtedly necessary, will not be sufficient and effective.” Its call for social solidarity echoes the ICTU position on economic recovery, as does its conclusion that tax changes “should not be considered solely in terms of revenue, but also in the light of principles of tax reform.”

NESC includes union and business representatives as well as economists and Government officials.

You can read the NESC report HERE