Fórsa and other public service unions have invoked a review clause in the Building Momentum public service agreement on foot of high and sustained inflation.

Fórsa general secretary Kevin Callinan proposed the move at the annual general meeting of ICTU’s Public Services Committee (PSC) earlier this month. Kevin, who chairs the committee, said sustained high inflation and strong public finances were grounds for a review of the agreement’s pay terms, which will see maximum pay increases of just 1.2% in 2022.

Clause 5.7 of Building Momentum says the agreement’s pay terms cannot be reviewed during the lifetime of the agreement unless “the assumptions underlying this agreement need to be revisited.” It says the parties must engage in such circumstances.

Speaking in advance of the meeting of the PSC, which represents almost all public servants in the State, Kevin said the assumptions underpinning the agreement clearly needed to be revisited in view of soaring inflation.

Inflation hit 5.6% in the year to February, its highest level for 21 years.

“It’s clear that the cost of living is on an upward trajectory, despite earlier hopes that prices would stabilise and fall. There was no assumption of the high and sustained cost-of-living increases in play when the agreement was negotiated in late 2020.

“Meanwhile, the public finances are in surplus, and both the unemployment rate and the projected deficit are much lower than anticipated at the time Building Momentum was negotiated and accepted by public servants in ballots,” said Kevin.

Early last month, Fórsa raised the issue a the Labour-Employer Economic Forum (LEEF), which brings together the most senior Government, union and employer representatives.

“I identified three urgent actions – including a confirmation that talks on a successor to Building Momentum would open in May – which are required to stabilise the agreement against the background of these radically-changed economic circumstances. In the absence of any concrete movement on these necessary actions since then, and with the cost of living continuing to soar, it’s time to trigger the Building Momentum review clause,” said Kevin.

Once triggered, the Building Momentum review clause requires engagement between the parties. Public expenditure minister Michael McGrath has only said that he expects talks on a successor to the agreement later this year.

The deal expires in December, and unions are pressing for early talks to address inflation and ensure that pay adjustments agreed for 2023 can be factored into this year’s Budget announcement.