Government may extend deadline for cutback talks

The Government is to circulate a framework document to the social partners tomorrow setting out headings and key areas for negotiations…

The Government is to circulate a framework document to the social partners tomorrow setting out headings and key areas for negotiations on the national recovery programme.

Government sources also indicated that if progress was being made on achieving a consensus between the social partners, by the weekend, that the deadline of the end of the month which it had originally set for agreement, could be extended.

As talks between unions and Government officials on the proposed programme concluded tonight, Ictu general secretary David Begg said that a “reasonable amount” had been made on drawing up the framework document.

Earlier unions had sought to have the document redrafted on the basis that the language involved was “very vague”.

READ SOME MORE

Unions are insisting that there has to be concrete indications in the document that all sectors of society will contribute to economic recovery. They maintain that any recovery programme cannot just be about cuts in pay and public services.

The unions argue that the burden of economic recovery must be carried by all sectors according to their capacity to do so.

Talks between the Government and the unions are to resume at 2.30pm.

The Irish Congress of Trade Unions (Ictu) today rejected proposals by the employers' group Ibec to defer the implementation of the new national pay deal for at least a year.

Speaking after a meeting of the Ictu executive council this afternoon, Mr Begg said that members felt the Ibec move had been “opportunistic”.

He said while Ictu recognised that there were difficulties in the economy that the agreement had “fairly robust mechanisms to assist companies that got into trading difficulties”.

He said unions already had 40 to 50 agreements with companies to pay the pay deal. He said there was no reason why the current arrangements under the agreement could not continue into the future.

“Ibec seeking a blanket deferral for the terms of the agreement without setting out specific justification seems for us to be opportunistic," he said.

Mr Begg said Ictu had to tell Ibec of its decision and it would be up to the employers’ group to decide whether it intended to remain within the framework of the Towards 2016 agreement.

He said that if Ibec decided it was not going to remain within the agreement it would complicate matters on negotiating an economic recovery programme with the Government.

Earlier Mr Begg said the Government had presented unions with a document setting out "broad protocols" for discussions later in the week. He said that the document dealt with broad objectives from a macroeconomic point of view. "This morning was about ground rules," he said.

Talks between Government, employers and unions on economic recovery resumed this morning, with an increase in property tax on second homes and a pension levy for public servants among the measures set to be discussed.

The talks on plans to cut €2 billion from exchequer spending this year began at 11am. Government officials were this afternoon meeting employers' representatives. They were also meeting groups representing farmers and the voluntary sector later.

The head of the country's largest public sector union said this morning that delays in negotiating an economic recovery programme were not doing the process any good in terms of credibility.

Speaking on his arrival at Government buildings this morning, Peter McLoone, general secretary of the Impact trade union, said nobody was happy with the pace of the negotiations. He said there was a need to get down to business and get as much work completed this week.

He said he believed there had been far too much concentration on the burden that would be carried by ordinary working people. He said the starting point had to be a recognition that everybody had to bear a contribution based on their capacity to do so.

Mr McLoone criticised moves by employers’ group Ibec to have the national pay deal – which allows for increases of 6 per cent phased over 21 months – deferred for at least a year.

"The first thing we need if this process is to succeed is an acknowledgement that everybody has to contribute to finding a solution, that the burden just can't fall on ordinary working people," said Mr McLoone on RTÉ radio.

"I have to say there was huge disappointment with the response from the business community, from Ibec. The stunt that they pulled last Friday reveals that their real intention is to first of all attack the pay of those who work to provide essential and necessary public services and then to use that to reduce pay in the economy overall. "

"We need a solution that must be fair and be seen to be fair and business needs to accept that everyone needs to contribute and the biggest sacrifices have to come from those who are best placed to bear the financial burden," he stressed.

According to Government sources, the levy on second homes could be increased, while public sector workers are also facing plans for a levy on pensions to help contribute to their stability. The talks will also discuss the establishment of a national recovery bond, which was proposed initially by the Irish Congress of Trade Unions as a way to raise funds from members of the public.

Taoiseach Brian Cowen met with four senior trade union leaders over the weekend to try to advance the process. Last week, employers' group Ibec called for the national pay deal deferred for at least a year, and said there should be no increase in the minimum wage.

The group said deterioration in economic conditions had made it impossible for its members to pay the increases of 6 per cent over 21 months.

Meanwhile, public sector pay cuts have not yet been ruled out, with Minister for Justice Dermot Ahern telling RTÉ's The Week in Politicslast night that "everything is on the table".

Martin Wall

Martin Wall

Martin Wall is the Public Policy Correspondent of The Irish Times.