Business body calls for emergency pay cut legislation
The body representing small and medium businesses in Ireland today called for "immediate emergency legislation" to allow the introduction of pay cuts across the public sector, ahead of further intensive talks with unions and employers on public spending cutbacks.
The Irish Small & Medium Enterprises association (ISME) has said that the introduction of this legislation was vital in ensuring cost savings in Government spending are achieved without delay.
“The fact that public sector pay accounts for almost 50% of current expenditure means that the need for payroll cuts is beyond question," said ISME Chief Executive Mark Fielding,
Several senior ministers have been warning that civil and public servants will have to accept pay cuts as the coalition seeks to slash €2bn in spending this year. Public sector unions have however already threatened to legally challenge any proposed pay cuts.
"Long drawn-out legal battles need to be avoided at all costs," Fielding said. "We need these reductions now and cannot afford to wait.
"The threat of legal action, strikes and civil disruption by the unions must not be allowed when the economy is facing a national crisis and private sector jobs are being shed at record levels.”
