Lenihan: No more pay cuts for public sector

Finance Minister Brian Lenihan has reassured public sector unions that the Government is still committed to the Croke Park agreement, it was reported today.

Finance Minister Brian Lenihan has reassured public sector unions that the Government is still committed to the Croke Park agreement, it was reported today.

The deal, which was negotiated six months ago, sets out targets on public service pensions and reform.

The Government has promised there will be no further pay cuts or changes in existing pension arrangements over the four-year life of the deal, which runs to 2014.

Neither will there be any compulsory redundancies.

In return the unions have agreed to co-operate with a wide-ranging programme of work reforms.

The deepening crisis in the public finances has however led to increased speculation in recent weeks that the Government could walk away from the deal.

Newspaper reports this morning however detail a meeting between Minister Lenihan and IMPACT General Secretary Shay Cody on Monday night to discuss media speculation on the issue. The minister is reported to have reassured Mr Cody and other union chiefs that his department had nothing to do with reports that the deal was under threat.

Meanwhile Mr Cody this morning said management in the public sector has to live up to their side of the deal on the Croke Park agreement, in order for it to work.

Mr Cody said commitment has been shown by both sides to the deal.

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