THE GOVERNMENT is prepared to examine whether the €1.3 billion reduction it is seeking in the public sector pay bill can be generated through reform rather than by pay cuts, the Taoiseach has said.
Brian Cowen told The Irish Timesyesterday the Government was anxious "to work with the public service unions to identify measures including the restructuring of the delivery of public services which would enable costs to be reduced without reducing pay rates".
Public sector unions are to meet Department of Finance officials next Wednesday. The Government has told union leaders that it wants to reduce the public sector pay bill next year by 6.85 per cent, amounting to €1.3 billion. Unions are considering plans for a national public sector strike on November 24th.
Among the reforms likely to be considered are greater efficiencies and flexibilities, improved use of technology, more scope for redeploying staff and the removal of bureaucracy.
At the forthcoming talks the Government will set out its own analysis of what is required for recovery including the importance of restoring stability to the public finances, Mr Cowen said. In this context achieving a €4 billion adjustment in 2010, which was announced last April, was critical.
“Achieving that adjustment will require difficult decisions to be taken and this would include a reduction of the order of magnitude of €1.3 billion in the cost of the public service pay bill. It is clear that adjustments of this scale will be difficult.
“However, the Government is anxious to work with the public service unions to identify measures including the restructuring of the delivery of public services which would enable costs to be reduced without reducing pay rates,” he said.
Mr Cowen said that the Government understood the concerns of public service workers. “In particular we understand the concern that the burden of adjustment should not fall disproportionately or unfairly on public servants,” he said.
The Government would engage fully in discussions and would respond in a considered way to the views put forward by the social partners. “However, the Government must take decisions in the context of the forthcoming budget which it believes to be necessary to secure the future of the economy,” he added.
Several months ago the country’s largest trade union, Impact, proposed a deal under which it would co-operate with the transformation of public services including greater flexibility and the agreement of new redeployment arrangements in return for guarantees on pay, pensions and jobs. To date the Government has not responded publicly.