Employers, unions and the Government have agreed a new national partnership deal at a meeting of the social partners in Government Buildings this evening.
The ten-year partnership agreement - provisionally entitled Toward 2016 - will provide for a 10 per cent pay increase over the next 27 months as well as several changes relating to employment standards and occupational pensions. Workers earning less than €10.25 per hour will get an extra 0.5 per cent over the period.
Speaking after the final plenary session at Government buildings tonight, Taoiseach Bertie Ahern said the deal provided a "framework for meeting the economic and social challenges ahead".
Mr Ahern said the new agreement was not just about pay but also about "maintaining a supportive macro-economic environment in order to enhance productivity, competitiveness and build a stronger society"
Key elements of the social agenda include linking the lowest social welfare payment to 30 per cent of average industrial earnings and providing 27,000 additional social housing units within three years, 500 primary healthcare teams to alleviate pressure on A&E units and a family carer strategy.
The deal also includes the introduction of stiffer penalties for employment law breaches and a trebling of the number of labour inspectors.
The deal is now subject to ratification by each social partner and organisation over the coming weeks.
There are also outstanding issues relating to the agricultural elements of the deal which are to be discussed over the next three days with a view to reaching a deal by the weekend.
Minister for Enterprise, Trade and Employment, Micheál Martin said the agreement represents "a shared vision and agreed framework for Ireland's continuing success in meeting its ambitious economic and social objectives'.
"The Government will live up to the commitments being entered into which will enable Ireland to become a dynamic, internationalised participatory society and economy with a strong commitment to social justice where economic development is sustainable and internationally competitive," Mr Martin added.
Employers' group Ibec said the proposals include special measures to assist the manufacturing sector, address the energy crisis and support balanced regional development. Director-general Turlough O'Sullivan said: "Our ability to trade successfully has been under increasing pressure recently with business costs having increased much faster here than in other countries."
But he warned the current pay proposals are at the very limit of what the country can afford. "We are entering very uncertain economic conditions and there is a particular need to support the manufacturing sector, which is experiencing serious competitive pressures," he said.
Fr Sean Healy, Director of the CORI Justice Commission, said it marked a major breakthrough in social policy in Ireland. "The agreement's ten-year framework recognises the complementary relationship between social policy and economic prosperity," he said. "The agreement's life-cycle approach provides a new framework for developing social policy which is very welcome as it ensures that all issues will be addressed in an integrated way."
