Ahern urges unions to show wage 'realism'

The Taoiseach today urged unions to be realistic about wage demands as he began the difficult task of brokering consensus with employers.

The Taoiseach today urged unions to be realistic about wage demands as he began the difficult task of brokering consensus with employers.

Last year the Taoiseach was forced to defer a heavily-criticised €38,000 salary hike, making him one of the best-paid world leaders.

Round-table discussions with the social partners on the Towards 2016 national pay agreement today opened at Dublin Castle.

Unions, who have warned that wage rises must be in line with cost of living increases, also want to prioritise comprehensive employment rights.

Bertie Ahern said: “We have to be realistic on pay. The big issue for us is to keep Ireland competitive. Our products and services must be exported at competitive prices to retain market share.”

Unions are still angry after last month’s independent benchmarking body recommended little or no pay rises for their workers.

Increases were earmarked for just 15 of the 109 grades examined by the Public Service Benchmarking Body.

Last Autumn, the Taoiseach and his Cabinet ministers sparked public and Opposition outrage after they awarded themselves hefty pay rises. The Government later bowed to the pressure by deciding to defer the increases until next September.

Mr Ahern said today that it would probably be after Easter when the Government gets into substantive negotiations on pay.

“I’ve been involved in this process for over 20 years and it’s always a little bit protracted. I wouldn’t be expecting a quick breakthrough,” he said.

Tánaiste and Finance Minister Brian Cowen, who also attended today’s talks, said export-led economic growth was the way forward.

“We’re in a situation where the economic climate is changing all the time in terms of international markets,” he explained.

Siptu said Ireland was only the ninth most costly business environment in the euro zone and Irish workers were among the most productive in the world.

General secretary Jack O’Connor also called for workers to be provided with more skills training.

Social policy watchdog Cori claimed the Government has failed to honour pledges in Towards 2016 relating to providing 300 primary care teams and delivering the National Carers Strategy.

Age Action Ireland warned that the national deal should not just be about wages but improving society.

“We are concerned about the continuing poverty among older people and the increasing inequality they experience,” said chief executive Robin Webster. “We are not only worried about incomes, but also about access to services.”

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