Public service unions set to ballot on industrial action

Expenditure Minister Michael McGrath yesterday said “there is a willingness on the part of Government to improve the offer that is there” but it would need the unions “to meet us as well”.

But chief negotiator, Fórsa general secretary and Irish Congress of Trade Unions (ICTU) president, Kevin Callinan, said the minister’s comments would not halt today’s meeting.

It is anticipated that the Public Services Committee of ICTU will endorse plans for a co-ordinated cost-of-living campaign after talks on a review of the current pay deal – that were prompted by spiralling inflation – broke down last month.

This will be backed up by ballots for industrial action by each of the affiliated unions.

Talks collapsed after unions rejected a Government offer that would mean pay rises worth a total of 7pc for public servants this year and next.

This includes 1pc paid earlier this year and another 1pc already due under the deal in October.

The additional pay rises offered would cost an extra €1.2bn, bringing the total cost of the Building Momentum deal to €2.3bn.

We are willing to be as flexible as we possibly can but we will not chase inflation

Mr Callinan said the minister’s comments were “just at odds” with the message unions got from the WRC, which was that the other side would not be available until the “backend of August”.

It is expected that ballots will begin before the end of August and conclude in mid-September.

Speaking on Morning Ireland earlier yesterday, Mr McGrath said: “We are willing to be as flexible as we possibly can but we will not chase inflation and we are not going to set wage increases that seek to match the level of inflation that’s there.

“Because we know what the lesson is from that policy. The lesson is it results in inflation becoming embedded in the system.

“It leads to second and third round effects and it makes it even harder to get inflation under control.”