Ibec and Siptu clash on motor trade pay deal

EMPLOYERS GROUP Ibec has dismissed as "misleading" the assertion that a new pay agreement for the motor trade was an example of "local bargaining already beginning to work".

The claim was made by Siptu general president Jack O'Connor who made public the details of the deal yesterday.

Some 5,000 workers employed in the motor industry will receive pay rises of 3 per cent under an agreement that covers eight months of 2008 from May 1st.

Mr O'Connor signalled that it was a significant deal in the context of the aftermath of the breakdown of talks on a new national pay agreement.

"The Simi [ Society of the Irish Motoring Industry] agreement is important because it provides an example of what can be achieved with reasonably minded employers. It also shows that local bargaining is already beginning to work," he said.

In a clear criticism of Ibec, he continued: "It also underlines how unrealistic were the terms proposed by Ibec last week, which involved pay pauses ranging from six to 12 months, followed by increases worth 2.5 per cent - or nothing at all if employers were feeling pessimistic."

Ibec director of industrial relations Brendan McGinty challenged Siptu's portrayal of the "new" deal.

"This deal was reported as far back at May 29th. There is nothing new in this," he said. "To represent it as a breakthrough in the context of a reversion to local bargaining is misleading.

"To represent this as some kind of achievement in the wake of the collapse of the national pay talks is untrue."

Mr McGinty said he was encouraged by comments by Mr O'Connor and David Begg of Ictu in recent days that a national agreement remained their preference.

While pointing out that there were disagreements, he said: "Social partnership has been very resilient. Now is its greatest test. There is a responsibility on us all."

Meanwhile, the Tánaiste, Mary Coughlan, yesterday indicated that she and Taoiseach Brian Cowen will get directly involved in partnership pay talks at what they consider to be the appropriate time. "There is an anxiety on both sides to bring this matter to finality," she said. She added there had been discussions between both sides and the Government, and she hoped they would continue until the end of August.

"A deal would be very important for our economic recovery," said Ms Coughlan.

"I met Ibec over the bank holiday weekend. The Taoiseach and his office have been in touch with both sides. I would hope to be speaking to the unions and to congress . . . it is not that things have stopped, one way or the other."

Ms Coughlan said that it would not be appropriate for her to tell the unions what to do, but it was important to say that "calmness" was required at this time.

© 2008 The Irish Times

This article appears in the print edition of the Irish Times