THE GOVERNMENT believes it is highly unlikely it can agree a traditional-type social partnership agreement with employers and unions, and is to decide next week on a possible new approach.
No talks with the social partners are planned for the weekend, and Government sources said last night an agreement containing formal commitments to be implemented over a specific time period, as has been negotiated in the past, was now unlikely.
The Cabinet will next week review the progress made in talks with the trade unions, employers and other social partners, as well as the difficulties that have emerged.
It is expected that the Government will then set out its position to the social partners in further contacts towards the end of the week.
However, it is understood that the Government is prepared to consider initiatives in a number of areas put forward by the social partners in the recent talks, particularly on job protection.
Government sources said it could consider measures to streamline funding currently provided in this area across various departments, agencies and schemes.
It is understood the Government could also look at boosting the €100 million available to assist companies in trouble under the new Enterprise Stability Fund announced in the recent budget by using money which would otherwise have had to be paid out in social welfare payments to staff who would have lost jobs.
However, it is understood that there are some concerns that such a plan could face difficulties in relation to EU state-aid rules.
Informed sources indicated that the Government did not support calls by the Irish Congress of Trade Unions (Ictu) for the State to take on the running of private sector defined benefit pension schemes in a move to provide a guaranteed level of payout in the future even if this was lower than the amount originally anticipated.
Yesterday trade unions and the employers’ body Ibec both backed calls for a massive State programme to support jobs.
Ictu sought a €1 billion package, comprising existing and new resources, which would be used to ensure redundancy became a “last resort” and people were guaranteed access to training.
Ibec director general Turlough O’Sullivan said the Government faced a stark choice on whether to borrow to fund welfare payments or spend what money it could on underpinning businesses to protect jobs.
Mr O’Sullivan said employers and unions were singing from the same hymn sheet on the issue of job protection.
He called on the Government to introduce a PRSI holiday for employers, as well as a trade credit insurance scheme and an easing of the rules in relation to State aid.
Siptu president Jack O’Connor said he did not believe there would be a partnership deal on economic recovery unless there was a considerable change of heart on the part of the Government.
He said he believed that the Government did want a deal, but that there was a fear that international finance capital would look on disapprovingly if they did anything.
The executive council of Ictu is to meet on Tuesday to consider the position of the talks.
A number of unions have plans for industrial action in the event of the talks on a national recovery deal collapsing.