The Irish Congress of Trade Unions (Ictu) has refused to rule out strike action over Government proposals tp impose a pensions levy as part of a package aimed at shaving more than €2 billion off exchequer spending.
Ictu held a press conference in Dublin this afternoon which was attended by general secretary David Begg as well as vice-presidents Jack O’Connor, Patricia King and Peter McLoone.
Speaking at the conference, Mr Begg said the lacking ingredient in the Government's cutback proposals was fairness.
He said that a tweaking of the proposals on the pensions levy would be an inadequate response in terms of fairness. "It seems to us unless there is a re-evaluation of the Government position the future outlook is depressing".
Congress vice-president Jack O'Connor added "we shouldn't be using the term pension levy - thats their term - it's a pay cut".
Mr Begg said the next step of Ictu would be to "convene a meeting of our full executive council and out of that develop our strategy for the future".
He said there would be no "knee-jerk" reactions to the cutback proposals, but did not rule out a "campaign" against the Government if congress could not secure some re-engagement. Mr Begg declined to elaborate on what form any campaign would take. He said Congress would consider all options.
Mr Begg also said Ictu were "the last man standing" in the social partnership agreement. "It's very hard to have a social partnership with yourself," he said.
In the Dáil today, Mr Cowen insisted that the savings were absolutely necessary to reorganise the public finances and to boost business competitiveness as well as investor and consumer confidence.
Legislation is expected early next month to give effect to the Government's new cutback proposals, which were announced yesterday following the breakdown in social partnership talks.
Under the plan the biggest item is a reduction of €1.4 billion in the public service pay bill, the bulk of which will be achieved through a new pension-related payment to be made by all public servants in the State.
Other measures include a cut of €95 million in overseas development aid, €75 million through a reduction in the early childcare supplement and €80 million from cuts in the professional fees paid by the State to lawyers and doctors.
The plan came against a background of further disastrous exchequer figures for January which show tax receipts €900 million down on the first month of last year.
The Irish National Teachers Organisation (INTO) said today the Government’s economic measures were “totally unacceptable”.
INTO general secretary John Carr warned of a “strong response” from the union if the “disproportionate” measures were not modified. “Three quarters of the cutbacks unveiled yesterday will be paid for by public servants while those who got the country into the economic mess have not been asked to shoulder any additional burden,” he said.
He said the INTO were willing to engage with the Government in any future dialogue over the proposals.
Pdforra, the representative association for Defence Forces personnel, today called the pensions levy for public servants “unfair and bitterly disappointing” and called on the Government to revisit the issue during talks with Ictu.
Pdforra general secretary Gerry Rooney sought assurances from the Minister for Defence Willie O’Dea that soldiers would not be used as strike breakers in the event of industrial action over the plan.