Dear members,

Over the past two weeks, Budget Day has come and gone, there has been a horrific escalation of violence in Israel and Palestine, and a strike by workers in the community and voluntary sector was averted hours before it was due to start. 

In the early hours of Tuesday morning, just before community and voluntary sector workers were due to begin an indefinite strike action, unions secured an agreement at the Workplace Relations Commission (WRC), offering a clear path to resolving the long running pay dispute.The most important part of the agreement was the recognition by the government of the staffing crisis in the agencies concerned and their commitment to re-engage in relation to pay parity following the public service pay talks. You can read more about the agreement here. 

We are now at half time in this dispute. However, I want to acknowledge the huge effort by our members, branches and staff to prepare for the strike and to thank everyone involved. It was wonderful to see workers and providers standing together for service users.

Over the past week, it has been impossible not to be concerned by the escalating violence in the Middle East. Last week I issued a statement on behalf of Fórsa condemning in the strongest possible terms the appalling violence against civilians in Israel and Gaza, expressing condolences to all who are mourning the loss of loved ones and calling for the immediate safe release of those who have been taken hostage.

Since then, we have witnessed utter devastation in Gaza and a humanitarian crisis unfold before our eyes. Following my return from Palestine at the end of June, I met the Tánaiste along with representatives of a number of other Irish charities and NGOs. Last Friday we wrote to him again asking that the Irish government continue to do all it can to stand for international law and to act as a voice of reason and de-escalation. Along with other Congress unions we will be participating in demonstrations this weekend to reinforce this call and to support the ordinary Palestinian people.

Budget Day has come and gone, and, in many ways, it was a mixed bag. The further reduction in childcare costs will make a difference for parents of young children and the extension of free schoolbooks will remove a worry for many when next September approaches.

The increase in the National Minimum Wage to €12.70 per hour had been well flagged and represents a step on the road towards a real Living Wage. The focus on low paid workers is a welcome one and will need to be reflected in pay bargaining as we move forward.

Overall, the consensus is that the considerable budgetary adjustment was spread widely without making the kind of transformative impact that could have been possible. And some elements, such as the tax break for landlords, were simply regressive.

At the conclusion of his speech Minister Paschal Donohoe alluded to the upcoming public service pay talks expressing the hope that the various measures announced in the budget would be reflected in union demands.

He didn’t refer to the significant shortfall in wages against inflation over the 2021 to 2023 period or to the fact that in his budget speech last year he began by raising his department’s estimates for 2023 inflation from 3% to 7.1%.

It is likely to turn out to be nearer the higher figure. Importantly, he didn’t acknowledge that many of the budgetary measures are temporary in nature while the increase in the overall level of prices almost certainly is not.

It is clear that pay bargaining across the economy, including in the public sector, will have an important part to play in protecting living standards. This will remain to the fore of our minds as we continue to prepare for public pay talks and we will of course continue to keep you updated.

Kevin Callinan
General Secretary