Pay and pensions on table as pay talks intensify today

Talks on a new public-service agreement are expected to intensify on Tuesday, with the Government likely to table detailed proposals on pay and pensions for the first time.

Key issues will include the scale of pay improvements offered by the Government over the terms of any new deal and which categories of staff will be required to contribute more towards their pensions in the future.

The Government has indicated that it wants to see some public-service personnel make a greater pension contribution in return for a rolling-back of the existing public service pension levy. However, it has so far put forward no details as to how this would work, particularly in relation to the income threshold above which the requirement to make increased pension contributions would come into effect.

There has been some speculation that unions will press for staff earning less than €65,000 to be exempt from any higher contribution. But if the Government wanted to maximise its take, it would have to apply to lower incomes .

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It is understood that groups such as gardaí, prison officers and fire fighters – who have faster pension accrual rates than others – are opposing any suggestion they should have to pay more.

The outsourcing red line

Proposals tabled by the Government over the past fortnight to relax existing restrictions on the outsourcing of public services have been flagged by trade unions as “red line” issues that would undermine a potential new accord.

Unions will be watching carefully to try to work out whether the Government is determined to secure greater flexibility on outsourcing or whether it is prepared to “trade” this issue for a deal when the negotiations reach their end game.

Nurses and doctors are also still seeking special financial incentives aimed at tackling recruitment and retention issues. However, this is being opposed by other unions.

Informed sources said it was likely to become clear over Tuesday and Wednesday whether a new public-service deal could be agreed.

Improvements in pay are likely to be “backloaded” towards the end of any new accord as the Government has insisted that its “fiscal space” for 2018 is very limited – at about €200 million – although more resources would be available in subsequent years.

In a bulletin to members on Tuesday, Impact, the country's largest public-service union, says unions would work in the talks to increase the thresholds for paying any higher pension contribution by as much as possible.

However, it warned that the Government will want to maximise the amount of money the measure will realise. “The navigation between this rock and that hard place may determine success or failure.”