Unions and employers wrestle with Govt wage proposals
Detailed discussions will continue today on wage increases proposed in the new social partnership deal.
The Irish Business and Employers Confederation has warned that the recommendations – allowing for general pay increases of 10% over 27 months – are at the very limit of what the country can afford.
“Our ability to trade successfully has taken a battering in recent years as business costs have increased so much faster here than in other countries,” said Turlough O’Sullivan of IBEC.
“We are entering very uncertain economic conditions and the somewhat shorter duration of the proposed agreement recognises this reality.”
Motions for pay increases in the private sector are: 3% from December 1 2006; 2% from June 1 2007 (2.5% if earning up to and including €20,859 per annum); 2% from March 1 2008; and 2% from September 1 2008.
In the public service, the pay conditions will be as above, subject to an acceptable programme of change and modernisation to enhance the effectiveness of public services.
But unions say the issue of pension schemes remain outstanding.
Taoiseach Bertie Ahern yesterday urged employers and trade unions to accept the outline proposals, which he said were the best terms that could be achieved.
He said they represented a fair balance between the need to secure the living standards of those at work, and the pressures of the enterprise sector of the economy.
Mr O’Sullivan added: “The IBEC negotiating team will be recommending the proposals to members as the best that can be achieved at national level, subject to satisfactory agreement being reached on outstanding matters including measures to assist sectors of industry experiencing particular competitive pressures.”
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