The Government is expected to argue to trade unions that any new pay increase for public-sector staff should not come into effect until September next year.
Government sources indicated its position when pay talks open later this month will be that pay rises should not kick in until after the scheduled expiry of the existing Lansdowne Road deal in September 2018.
Any such move is likely to be strongly resisted by the unions, which represent about 300,000 State employees.
Any new deal is expected to run for a three-year period from 2018 to 2020. However, it is understood that union leaders have been told that for the Government the level of resources available in the first year of any new accord, in 2018, will be limited.
It is expected funds available – the so-called “fiscal space” – will expand in 2019 and 2020.
The Irish Times reported earlier this month that a deal involving increases of about 6 per cent over a three-year period as well as potential further increases as part of local bargaining in different parts of the public service was being mooted.
Pension reform
The Government is expected in the forthcoming talks to press for significant reforms to public-service pension arrangements, including converting the existing pension levy into a higher permanent pension contribution for staff earning above a certain level of income.
Informed sources have indicated in recent days the mooted 6 per cent overall increase could be applied unevenly over the term of any accord.
This could mean an increase lower than 2 per cent could be awarded in 2018, made up by increases above 2 per cent in later years.
The talks between the Government on a new public-service pay accord are expected to get under way later this month after the report of the Public Service Pay Commission is finalised. The commission's first report is expected to be presented to Minister for Public Expenditure Paschal Donohoe within the coming days and published next week.
Meanwhile, the director general of the Workplace Relations Commission, who will oversee the forthcoming pay talks, warned on Friday that securing a deal will be difficult and incredibly complex.
Speaking at the annual conference of the Association of Higher Civil and Public Servants on Friday, Oonagh Buckley said that securing a successor to the Lansdowne Road accord would be even harder because of the pay expectations that had built up.
