Public sector unions wait as Government says it will not 'chase inflation' with pay deal
Minister for Public Expenditure Michael McGrath has said the Government would re-enter negotiations once the WRC had decided that “the right time” had arrived. Photo: Julien Behal Photography
Public sector unions are awaiting details of an improved pay offer for the sector after the Government indicated that it will be 'flexible' in the midst of a cost-of-living crisis.
Minister for Public Expenditure Michael McGrath has spoken of the State’s willingness to further engage in negotiations with unions at the Workplace Relations Commission, but added that the Government is not prepared to “chase inflation”.
Inflation in June stood at 9%, its highest rate in 40 years and roughly three times the Government’s projection for 2022. Unions, particularly public service body Forsa, have made no secret about the cost-of-living crisis being their primary focus in any negotiation.
Talks regarding a successor to the current public pay deal, Building Momentum, broke down at the WRC on June 17 without agreement and have yet to be reconvened. Mr McGrath has said the Government would re-enter negotiations once the WRC had decided that “the right time” had arrived.
He said the Government is prepared to improve its terms and is hopeful of securing a deal for 2023 also in order to bring “certainty” to the public wage bill. “We will be as flexible as we can, but we need the unions to meet us,” the Minister said.
However, the Government’s official position remains that it is “reflecting” on the situation, as has been the case since the WRC talks broke down, union sources said.
“We are ready to talk when there’s a significant new proposal from the Government side,” a senior source said. “There is none at present.”
The vacuum created by the breakdown of talks at the WRC, which saw the Government’s offer of a 7% pay increase over two years – an additional cost to the Exchequer of €1.2 billion - rejected, has seen several unions announce their intention to ballot for industrial action.
On Monday of this week, Siptu said it is preparing to ballot its membership due to “the failure of the Government to conclude a deal” that takes account of the cost-of-living issues being experienced by lower-paid members.
Sectoral organiser with Siptu Brendan O’Brien said that the union could not “credibly” put a 2.5% increase to the end of 2022 to its members given many of them “are now unable to make ends meet to cover their basic needs”.
Meanwhile, the Irish Nurses and Midwives Organisation (INMO) on Tuesday likewise announced its intention to join a programme of industrial action in order to expedite a new public deal.
“Our executive has instructed that a campaign of information for members be commenced after the ICTU Public Sector Committee meets on Wednesday with a view to participate in this public service campaign up to and including industrial action if necessary,” said Phil Ni Sheaghdha, general secretary with the union.
“The public sector carried this country through an incredibly bleak and uncertain pandemic,” she said, adding that the Government’s response “to this reality must reflect the impact the cost of living increases are having on the retention of essential staff”.
The ICTU meeting today is expected to produce a consensus as to what route the unions will choose next in order to resolve the issue.
The grouping last met on July 15, and stated that the Government’s attitude to the situation, given the Dail has now risen for the summer, “is bordering on contempt”.
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