[ad_1]
New doubts are emerging within Cabinet about the viability of a new public sector wage deal to be negotiated in the coming weeks.
The Minister of Public Expenditure, Michael McGrath, has told the He would prefer to see a deal negotiated, but others in Cabinet are concerned about the “dangerous signal” that such a deal would send at a time of massive job losses and recession in the wake of the Covid-19 pandemic.
The current wage deal will end in October with another 2% wage increase for 300,000 public sector workers, the sixth increase since January 2018.
Suggestions are emerging that with the government borrowing € 30 billion this year, any new pay deal would have to involve a pay freeze for a period, possibly up to a year, with an agreed roadmap for pay increases starting in so.
Although the declared position of the Government is to sign a new agreement, the ministers are expressing concern about this fact.
“I think the goal should be to agree on a new public service payment agreement if possible. I do not for a moment underestimate the challenge of agreeing to a new deal, given the really difficult economic circumstances we find ourselves in as a result of the impact of the virus, ”said McGrath.
“However, I also believe that the certainty and stability that a new agreement on public sector compensation would bring could be an important ingredient in the recovery of our economy.
“There will be initial discussions at the official level in the coming weeks and I will keep the Cabinet fully informed as things unfold.
“The current salary agreement is in effect until the end of the year and the Government has committed to respect it,” he said.
McGrath wouldn’t be attracted to the form a new deal would take, but behind the scenes, tensions are mounting over what will replace the current deal.
Sources have indicated that a salary freeze for public servants during the opening period of a new three-year agreement is said to be “quite likely” given the economic situation in the country.
Other ministers have expressed fears of entering into a new deal that will entail wage increases at a time when thousands have lost their jobs and businesses have collapsed.
Some members of the cabinet have said that it is preferable to reach an agreement “but not at all costs” and that managing expectations will be difficult.
“There are legacy issues that will need to be addressed before a new deal is likely,” said one minister. “But although an agreement that guarantees industrial peace is an outcome we would like, it cannot be at all costs. This will be very difficult to accomplish. “
Another minister warned of the reopening of sectoral tensions between the public and private sectors that emerged during the latest crisis when the then government negotiated the controversial Croke Park deal while more than 250,000 people lost their jobs.
“The benefits of a deal are obvious. There is much to be said in favor of industrial peace, but this year we are borrowing 30 billion euros to keep the lights on, “said a minister.
“There is a real danger that such an agreement will repeat the deep dispute between the public and private sectors that we had 10 years ago.”
Upon taking office, Mr McGrath met with a delegation from the Irish Trade Union Congress and initial discussions on “kicking tires” are likely to take place at the official level in the coming weeks.
While any deal should be factored into the budget day figures in October, senior sources have suggested that any potential deal is unlikely to be finalized before then.
Under the current agreement, the salary of public servants increased by 1% in January 2018 and another 1% in October of that year.
In January 2019, salaries of up to € 30,000 were increased again by 1%. In September last year, all wages increased by another 1.75% and then another 0.5% in January.
The final 2% raise for all public servants will begin on October 1, regardless of performance.
[ad_2]