Government stalls pay talks as low earners struggle
by Bernard Harbor
 
In a letter to the WRC, Fórsa general secretary Kevin Callinan, who leads the unions in the talks, said an improved Government offer had been expected after Tánaiste Leo Varadkar told RTÉ that the Government was prepared to make “a further offer.”
In a letter to the WRC, Fórsa general secretary Kevin Callinan, who leads the unions in the talks, said an improved Government offer had been expected after Tánaiste Leo Varadkar told RTÉ that the Government was prepared to make “a further offer.”

The Minister for Public Expenditure and Reform Michael McGrath has said he hopes further engagement between his officials and public service unions will lead to a pay agreement by the end of this month. But he confirmed that the Government was continuing to consider “how far we can go in an affordable way.”

 

Workplace Relations Commission-brokered pay negotiations ended without agreement on 17th June after Government proposals fell far short of 2021 inflation and projected 2022 cost-of-living increases. Department of Public Expenditure and Reform (DPER) officials subsequently told the WRC that the Government side needed more time to reflect on its position.

 

ICTU’s Public Services Committee (PSC), which represents almost all unions with members in the public service, subsequently backed the union negotiators’ view that the Government’s pay offer could not credibly be put to ballot while low and middle-income workers were struggling with soaring prices.

 

In a letter to the Workplace Relations Commission (WRC), Fórsa general secretary Kevin Callinan, who leads the unions in the talks, said an improved Government offer had been expected after Tánaiste Leo Varadkar told RTÉ that the Government was prepared to make “a further offer.”

 

But there has since been no indication that DPER officials have been sanctioned to make an improved offer.

 

Kevin said that, in common with workers across the economy, public servants were currently bearing the full brunt of large and sustained increases in the cost of home heating, fuel, food, housing, childcare, and many other essentials.

 

In his letter to the WRC, he said unions had triggered the Building Momentum review clause almost four months ago with the objective of improving the pay element of the agreement, taking account of higher-than-expected inflation in both 2021 and 2022.

 

“When it eventually responded in May, the Government indicated that it also wanted to discuss – and achieve certainty on – public service pay in 2023. The PSC officers were open to this on the explicit basis that it could not be a substitute for a review and improvement of the 2021-2022 pay terms.

 

“The Government offered an additional increase of just 2.5% for the period of the current agreement, which is now under review with the assistance of the WRC. This is clearly inadequate when inflation is likely to be at least 9% over that period.

 

“It, therefore, remains our position that this offer cannot credibly be put to ballots of low and middle-income public servants. This position cannot change unless the Government side is prepared to make an improved offer for 2021-2022.

 

“The PSC also agreed that its officers could not credibly reach an agreement about pay in 2023 before the current pay terms of Building Momentum have been properly reviewed and adequately improved,” he said.

 

The unions understand that the Government would prefer an extension of Building Momentum to be agreed and ratified prior to the October Budget statement.

 

“Although this would require individual union ballots to be conducted, it remains achievable if the Government side is prepared to make an improved offer, and if we can reach agreement on an outcome that can be credibly put to ballot,” said Kevin.

 

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