Big hurdles ahead in talks to extend Croke Park deal

Analysis:Public service trade union leaders have told members that talks with the Government on an extension to the Croke Park agreement, which commence today, will be the most difficult negotiations they have ever undertaken.

They have also warned that the outcome will not be without pain.

The Government is seeking to reduce its public service pay and pensions bill by a further €1 billion (over and above the savings already achieved under the current Croke Park deal) between 2013 and 2015.

For this year it has pencilled in further savings of about €300 million as part of the extension to the Croke Park process.

It has also made it clear that it is essential that it secures these additional savings to meet its budgetary targets.

Unions have told members explicitly that if there is no agreement or if they fail to engage in talks the Government will act unilaterally.

Shay Cody, general secretary of the largest public service union Impact, warned that in such a scenario “the employer would seek to impose payroll reductions in ways of their choosing as they have done in the past”.

Under the current Croke Park agreement the Government guaranteed not to cut pay rates any further for public service staff and not to introduce compulsory redundancies in return for co-operation with a widespread reform programme.

Any move to introduce cuts unilaterally would undoubtedly end the current era of industrial relations stability in the public service on which the Government has placed considerable importance.

Whether it would lead to all-out strikes is debatable but there would certainly be ballots for industrial action, work-to-rules could be predicted and co-operation with the public service reform process would likely come to a sudden end.

Such co-operation with reform has been very important over recent years to allow for the continued provision of public services at a time of significant downsizing of staffing levels. Much of the savings realised under the current agreement came from reductions in staffing numbers which, by 2015, the Government wants to see fall by 37,000 from their 2008 peak.

Significant savings have also been generated by implementing new rosters, a curtailment of overtime provision and new working arrangements.

Existing measures

However, Department of Public Expenditure and Reform secretary general Robert Watt told unions last week that although the existing measures had proved successful, they would not deliver the increased level of savings sought by the Government.

He said it would not be possible to achieve that level of saving while maintaining adequate levels of service to the public through head-count reductions alone.

“Therefore the measures the official side propose to put on the table will have to involve reductions in payroll costs for serving staff, as well as substantial productivity and workforce reform measures for all to assist in controlling any underlying expenditure pressures that may relate to the reduction in public service numbers,” he said.

The unions have said the Government’s proposals would be tabled only when the new process starts today.

However, Minister for Public Expenditure and Reform Brendan Howlin gave some hints when he announced the Government would be seeking an extension to Croke Park last November.

He said he wanted to maintain as far as possible the current pay for the “vast bulk” of public servants.