THE EMPLOYERS’ group Ibec has said it is very concerned at the lack of action on the part of the Government to preserve and create employment, and has warned that the jobs crisis is threatening Ireland’s social and economic fabric.
In a letter to the Taoiseach in advance of the resumption of talks yesterday evening with the Government on an economic recovery deal, Ibec said while immediate and major cuts in public expenditure were necessary, the Government must also take decisive action to support employment and get the economy going.
It said the absence of such a move would prolong the crisis and add to long-term unemployment.
The Government last week invited unions, employers and other social partners to meet to discuss whether there was sufficient basis for entering substantive negotiations to secure an agreed national response to the economic crisis. Talks held earlier this year on such an agreement did not prove fruitful.
The general secretary of the Irish Congress of Trade Unions, David Begg, said yesterday morning he was not optimistic about the new process. While an invitation to talks with the Taoiseach was always important, against the background of recent economic commentary “one can’t be over-optimistic”.
“One has the sense that it’s all being choreographed for a particular purpose, and it’s to prepare public opinion for an extremely harsh budget in early December, he told RTÉ radio.
In its letter to the Taoiseach Ibec’s director general Danny McCoy said that across Europe governments had taken steps to protect jobs in what was the most severe recession in recent times. The Government here must do the same.
“Ibec appreciates that short-term funding concerns preoccupied Government policy on this issue in the early part of 2009 but believes that circumstances are now more amenable to a substantive jobs stimulus package.
“This could largely be achieved through better use of existing resources. By this we mean that Government could use the money it is already spending, largely through social welfare where this interacts with the labour market, to both protect those in vulnerable employment and to help support new employment.”
He said recent Government initiatives such as the Enterprise Stabilisation Fund and Employment Subsidy Scheme had been welcome “but were completely under-resourced”.
The Ibec leader also called for the urgent introduction of a Government-backed export credit insurance scheme.
Mr McCoy repeated Ibec’s view that pay increases in 2010 were unrealistic, and a formal suspension of the pay terms of last year’s national agreement was required as a matter of urgency.
“If consensus cannot be reached, business will take its own decision on how best to proceed in the absence of an agreement.”
Meanwhile, Ictu will today publish details of its campaign of opposition to the jobs crisis and Government hints of cuts in pay and services in the forthcoming budget.