Minister warns unions to prepare for 'very, very difficult' pay negotiations
A senior Government Minister has warned unions to prepare for "very, very difficult" pay talk negotiations, insisting there is no guarantee a 6% pay rise over the next three years will happen and that further levies on public sector pensions will be sought, .
Public Expenditure Minister Paschal Donohoe outlined the situation as he risked causing a further rift between Government and unions by stressing "productivity gains" through increased public sector hours and sick leave cutbacks must be retained as part of any future deal.
Speaking to reporters at the launch of a new detailed Benefacts.ie analysis of the finances of non-profit organisations in Ireland, Minister Donohoe said the long-awaited public sector pay commission report will be provided to him next month.
However, dismissing repeated claims the report will call for a 6% public sector pay hike over the next three years, he said it is ultimately up to him, and not the commission, to decide on what to offer unions when talks begin.
"I will receive that before the middle of May, when I receive that report I will bring it to Cabinet, upon bringing it to Cabinet it will be published and shortly after that I will issue an invitation to the public service unions to begin negotiations with me on the future of public pay," he said.
"I believe those negotiations are going to be incredibly demanding.
"There is a very high level of need in relation to our public services, there is a very high level of expectation from members of our public services in relation to our wages that was articulated clearly over the last number of weeks.
"But what I'm articulating clearly is I have to deliver an agreement that's not only fair to those who work in our public services but has to be fair to anyone who works in our public services too.
"I will be the Minister who will be taking to Government what our proposals are in relation to the parameters for public service pay.
"I have seen much commentary and speculation as to what I may propose, but at this stage it is just commentary and speculation and I have taken nothing to cabinet yet in relation to those proposals.
"The Government will use the public service pay commission as a framework to look at how reward compares to the private sector, how it might compare to the public service elsewhere.
"But we ourselves will determine what we believe are the appropriate pay levels and we will commence with negotiation with the unions on that basis," he said.
Asked about further claims the public sector pay commission's report will controversially recommend the retention of the austerity era pension levy as it brings in up to €750m for the exchequer, Mr Donohoe said "again I and Government have made no decision in relation to that".
However, he added that "as I've clearly said on a number of occasions, public service pensions must be taken into account in the future negotiations we have".
Citing the fact the talks are going to be "very, very difficult negotiations", he added that while unions have opposed the move he believes "productivity gains" including increased hours and sick leave cuts must be retained as part of any new deal.
"The productivity measures that have been delivered as part of Haddington and Lansdowne Road cumulatively now deliver an additional 15 million hours per year to our public services.
"Across the duration of the next agreement I want to see those productivity gains retained alongside having discussions in relation to pay, and in the aftermath of the pay commission publishing their report I'll outline the board agenda the government has in relation to productivity," he said, adding:
"I am going to be approaching these negotiations in good faith, I am looking to secure a collective agreement, but it's a collective agreement that has to be fair to everybody."
