Unions warn of long campaign

Public sector unions have warned of a “long and sustained” campaign of action in the event of the Government imposing pay cuts…

Public sector unions have warned of a “long and sustained” campaign of action in the event of the Government imposing pay cuts in the budget on Wednesday.

Speaking after a meeting of the public service committee of Ictu this afternoon, Peter McLoone said such a campaign would be different to the one-day stoppages which have taken place up to now.

He said that individual unions would meet at sectoral level over the coming days to discuss the nature and timing of any such campaign.

However, Mr McLoone, who is the the general secretary of Impact and chairman of the public sector committee, warned that co-operation with the Government's change agenda had come to an end.

The committee met today to examine the possibility of further industrial action following the collapse of talks with the Government on Friday over alternative proposals to pay cuts in the public sector.

Earlier today Jack O'Connor, president of Siptu, warned that a campaign of resistance would follow a budget that "attacked workers and the most vulnerable people" while those most able to pay were insulated.

Speaking on RTÉ' Morning Ireland, Mr O'Connor said: "All the indications from the comments emanating from Government sources are to the effect that they will impose another pay cut on top of the pay cut that was imposed on the public service last March."

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"It will be a matter for the trade union movement and workers generally to respond to that."

However, Mr O'Connor said there was "some possibility" of retrieving ground "if something progressive" was done to make the budget fair.

Mr O'Connor said if a contribution of between €750 million and €1 billion was made by the better off in society to "alleviate the impact on the most vulnerable people", there would be "some chance" of progress.

"There will be a campaign of resistance against pay cuts. But if it’s all just about beating up working people, and beating up the people who depend on public services while the people at the top of society are completely insulated then its game over as far as any agreement with this Government is concerned."

Minister for Finance Brian Lenihan is expected to announce reductions of 4 per cent in social welfare payments, and cuts of between 9 and 10 per cent in child benefit in his budget on Wednesday.

Cuts in social welfare will be applied across the board with the exception of pensions, which will remain untouched. The reductions will mean a reduction of €8 in dole payments from the current level of just over €200. In addition, any person under 23 who refuses to participate in a jobseeker’s course will see their payments cut by 20 per cent, or more than €40.

It also emerged yesterday that the reductions in the public sector pay bill will likely be proportionately larger for those on higher incomes.

While the Government has said the average cuts in public sector pay will be between 5 and 6 per cent, those on higher salaries of €100,000 or more can expect cuts of more than 7 per cent while those on the lowest salaries will have cuts below the average. That means that Dáil deputies will be among the cohort whose salaries will fall by €7,000 or more.

Professionals such as doctors, lawyers and engineers providing services to the State are also expected to have their fees reduced by 5 per cent.

Minister for Foreign Affairs Micheál Martin last night confirmed that the Government would differentiate between lower and higher earners in the public sector.

Speaking on RTÉ's Week in Politics, he said that the budget would be tough, but would show the economy was moving in the right direction.

Elsewhere, Government Chief Whip Pat Carey told the Irish Timesyesterday that he is to talk with Independent Galway West TD Noel Grealish about his support for Wednesday's budget.

The move comes after a letter was sent by the former Progressive Democrat TD outlining a number of problems that he wished to see addressed in his constituency.

Mr Carey said he was confident of securing the votes of backbenchers and independents for the budget, which is expected to be one of the toughtest in the history of the State.

Separately, the Government confirmed yesterday that the latest report of the Review Body on Higher Remuneration will be incorporated into Mr Lenihan’s budget speech on Wednesday. The group has recommended significant pay cuts including a cut of 20 per cent, or €57,000, in Mr Cowen’s salary, reducing it from €285,000 to €228,500.

The report also recommends that ministerial salaries be cut by 15 per cent from €225,000 to €191,000 and for similar cuts of 15 per cent in the pay of the highest ranking civil servants, secretaries general. Their pay will be €242,000 after the budget, above that of the Taoiseach.