Talks are expected to resume on a new national pay agreement tomorrow, after the ICTU executive unanimously accepted assurances from the Taoiseach that the living standards of low-paid workers will be improved in the finance and social welfare Bills, as well as in budgets under any successor to Partnership 2000.
Mr Ahern welcomed the Irish Congress of Trades Unions' decision and said resuming the talks would underpin confidence in the economy.
The remaining hurdle is a meeting of SIPTU's executive today. While it is expected to endorse the ICTU decision, no one is taking the vote for granted. SIPTU is the State's largest union and it has one of the most democratic structures - with a large and vocal membership in the low-income groups.
The breakthrough came at 10 a.m. yesterday, when Mr Ahern gave the ICTU general secretary, Mr Peter Cassells, a letter assuring him that the Government had "no difficulty in subscribing to the vision set out by the National Economic and Social Council" and its priorities for future economic and social success - namely `a negotiated consensus that includes agreement on pay, tax reform, the public finances, infrastructure, housing and policies to address social exclusion'.
"In that context, the Government would be prepared to agree, as part of a partnership programme for ratification, the timetable for moving towards agreed multi-annual objectives, by way of improving the position of those on low incomes through the tax and social welfare systems."
This means in effect there would be no more "solo runs" by the Minister for Finance, Mr McCreevy. Future budgets would operate within the context of social partnership.
Mr Cassells said Mr Ahern's clarification in writing of the Government's commitment to tackling low pay and social exclusion had provided the basis for ICTU's re-entry into talks. "It effectively means the Government has agreed there must be a permanent solution to these problems. We will be looking for fundamental changes in how low pay and low incomes are dealt with, starting with any new agreement."
The ICTU vice-president, Mr Joe O'Toole, said the way was now clear to resume the negotiating process. But he warned that expectations of trade unionists were "very, very high". The opening position of the employers on pay "did not inspire hope. They have to realise there is a price to pay for the benefits of social partnership."
The SIPTU president, Mr Des Geraghty, said he would be reporting back to his executive tomorrow. "The Taoiseach has put on record his position on core issues," he said. "As a result of that and contacts over the past few days we have a full understanding on the Government side on social inclusion, which will be reflected in the finance and social welfare Bills, also longer-term commitments to the NESC strategy."