PUBLIC SECTOR CHANGES:TRADE UNION leaders and Government officials have reached an agreement on public sector pay and widespread reform of the public service following lengthy talks chaired by the Labour Relations Commission (LRC).
Under the deal, which was agreed at 3am yesterday, the Government has given a commitment that there will be no further cuts in public sector pay until 2014 at least.
The unions have agreed to implement extensive reforms in work practices and conditions of employment throughout the entire public service.
The LRC said most if not all unions had agreed to its request to move immediately to consider a cessation of industrial action that is currently under way.
The deal, which now has to be presented to union members in ballots, does not contain specific guarantees on reversing pay cuts that were put in place in the budget last December.
However, there will be a review of public sector pay in spring of next year and in each subsequent year. These will take account of “sustainable” savings generated as a result of the implementation of the reform programme, and determine whether there is any scope for the reimbursement of pay cuts.
The proportion of lost pay that would be reimbursed, and over what timescale, is unclear.
The agreement says that in the event of “sufficient” savings being identified in the review to be carried out in spring 2011, then priority will be given to public servants with pay rates of €35,000 or less.
The savings produced as a result of the implementation of the reform programme are to be independently verified by a implementation body which is to be established.
The deal says the issue of how pension increases for current staff and those who have already retired are determined – whether they will continue to be based on rises awarded to serving personnel – will be considered in the context of the review of pay policy next spring.
In the meantime the current position, whereby pay cuts introduced in the budget are not counted in calculating pension entitlements, will continue for another year.
The deal says the Government intends to introduce a significant restructuring and reorganisation of the public service in the coming years.
The new agreement on the public sector will allow the numbers employed “to reduce substantially over the coming years in accordance with a new public service numbers policy which will facilitate a progressive reduction in staff numbers across the public service by end-2012, and will be implemented by employment control frameworks”.
It says the current Government moratorium on recruitment and promotion will continue to apply until numbers employed in each sector have fallen to the levels set out in these new employment control frameworks.
The deal also says the Government may offer voluntary measures for staff to leave the public service, but that there will be no compulsory redundancies in the public service subject to compliance with the terms of the agreement, and in particular with the new provisions on flexibility and redeployment.
The deal says that flexible redeployment of staff is necessary to sustain the commitment to job security within the public service.
It says the parties have agreed to the redeployment of staff within and across each sector.
“If it is not feasible to redeploy within the sector, cross-sectoral redeployment may take place, within a geographic area where possible, having regard to the arrangements agreed in respect of non-commercial semi-State bodies.”
The deal says to maintain the delivery of public services at the same time as reducing numbers, the parties accept that “efficiencies will need to be maximised and productivity in the use of resources greatly increased through revised work practices and other initiatives”.
It also says the Government will move to dismantle barriers to the development of a unified public service labour market, and that to the greatest extent possible there will be standardised terms and conditions of employment across the public service.
“In that context, the parties have agreed to review and revise contractual or other arrangements or practices which generate inflexibility or restrict mobility.”
The deal says that in the future, merit-based, competitive promotion will be the norm, and that promotion and incremental progression in all cases will be linked to performance.
The deal also contains an industrial relations peace clause.
The parties have agreed that no cost-increasing claims can be made for improvements in pay or conditions for the duration of the agreement, while strikes or other forms of industrial action in respect of matters covered by the deal will be banned.
However, the deal also says that the implementation of the measures set out in the document is subject to there being no unforeseen deterioration in the Government’s finances.
PAY TALKS MAIN POINTS
No further pay cuts until at least 2014.
There are to be significant cost-saving reform measures across all parts of the public service.
Review of savings generated to be held in spring 2011 to see whether there is scope for any reimbursement of pay cuts.
Similar reviews to be carried out in subsequent years.
Substantial reduction in public service numbers in year ahead.
No compulsory redundancies but flexible redeployment arrangements necessary.
Unified public service labour market to be created.
Merit-based promotion to be the norm.
Promotion and incremental progression based on performance.
Industrial peace clause to be put in place.