The Government has published the legislation to give effect to the Lansdowne Road Agreement. The Bill, published last week, is expected to be enacted in November. When enacted, the new legislation will amend previous FEMPI Acts to begin the phased restoration of public service pay as agreed in the Lansdowne Road Agreement (LRA). The Bill also makes provision for the partial restoration of pension reductions to public servants.

The Public Services Committee (PSC) of ICTU voted by aggregate ballot to approve the Lansdowne Road Agreement in September. The agreement extends the main provisions of the Haddington Road Agreement until September 2018, restoring around €2,000 to the pay of most public servants in phases between January 2016 and September 2017. The pay restoration will be achieved through a combination of adjustments to the public service pension levy and a partial reversal of the 2010 public service pay cuts.

The Bill also provides for the repayment of a small amount of pension levy (€62.50 gross) that was deducted in 2013. IMPACT general secretary Shay Cody explained, “This will apply before the end of 2015 and, in technical terms, the exemption threshold for the Pension Related Deduction (pension levy) in 2015 will increase from €15,000 to €17,500.

“This arises as the Haddington Road Agreement (HRA) provided for a reduction in the rate of the pension levy in the second half of 2013, but was not possible due to administrative and legal difficulties at that time” he said.

Shay added that during discussions with the Irish Congress of Trade Unions (ICTU) Public Services Committee, the Minister for Public Expenditure and Reform, Brendan Howlin TD, confirmed that this would be paid during the lifetime of the HRA and has now confirmed this will be paid in December 2015.

Deal approved

Individual unions balloted their members on the terms of the LRA through the summer months. The agreement was endorsed by members of the BATU, CPSU, IFUT, the Irish Nurses & Midwives Organisation (INMO), SIPTU, the Irish National Teachers Organisation (INTO), MLSA, TEEU, PSEU, UCATT and IMPACT.

Shay said that the Lansdowne Road Agreement marked a significant step forward for workers after seven years of pay cuts, and reflected a growing trend for wage improvements across many sectors of the economy since 2014.

“Workers in the public and private sectors have faced huge challenges during the economic crisis. Pay improvements across all sectors are a crucial element of the country’s continuing economic recovery. More money in workers hands will largely be spent in the local economy, improving living standards and, most importantly, contributing to the job growth which has now developed,” he said.

Public sector pensions were the subject of a separate engagement with the ICTU Public Services Committee and the Alliance of Retired Public Servants during Lansdowne Road talks last May, as pensions are not directly covered by the agreement. Pensions will be increased by way of a reduction in the pensions related deduction (Public Service Pension Reduction – PSPR) made from pensions in payment.