Talks to agree new deal on pay continue

Employers have assured the Government that they will seek to break the deadlock in talks on a new national pay deal.

Employers have assured the Government that they will seek to break the deadlock in talks on a new national pay deal.

Separate talks were held yesterday by the secretary-general of the Department of the Taoiseach, Mr Dermot McCarthy, with union and business leaders, in an attempt to find common ground.

Employers are demanding a six-month pay pause as part of any new agreement, to be followed by rises in low single figures.

Unions insist that increases must be at least in line with inflation if members' living standards are to be protected.

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Concern about the willingness of employers to do a deal was expressed by Irish Congress of Trade Unions representatives at their meeting with Mr McCarthy.

At his later meeting with IBEC and other business groups, Mr McCarthy was told employers did want to bridge the gap and secure an agreement if possible. The alternative would be a return to free- for-all pay bargaining for the first time since the 1980s.

It is understood that no specific proposals to narrow the gap emerged at either meeting. However, the idea of a pay increase in two phases, as reported in The Irish Times on Saturday, is one option under consideration.

Mr McCarthy was due to report back to Congress leaders last night in time for an executive meeting of the ICTU this morning.

Further negotiations, expected to include direct talks between unions and employers, are to take place this afternoon.

A concerted effort to break the deadlock on pay is being made this week. If agreed, the increase would form part of an overall social partnership arrangement to succeed the Programme for Prosperity and Fairness.

Chris Dooley

Chris Dooley

Chris Dooley is Foreign Editor of The Irish Times