Pay talks at crucial stage, says ex-Siptu leader

A former union leader who was a key negotiator in previous social partnership talks said today that an agreement must be reached…

A former union leader who was a key negotiator in previous social partnership talks said today that an agreement must be reached within the next few weeks.

The talks, which were adjourned at 10.30pm last night, are expected to resume at Government buildings today.

Speaking on RTÉ radio, former Siptu president Des Geraghty said that the talks on a deal to succeed the Sustaining Progress package were always going to be a difficult. "This is a crucial week," he said.

Mr Geraghty said he felt that before the talks started, there was no agreement on the rate of inflation or the parameters of the deal.

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"There is pressure to reach the bones or a fundamental agreement in the next few days," he said.

He warned that not all issues would not be solved if there was a return to direct local bargaining. A new agreement needs to deal with national issues such as investment and taxation, he added. "Pay has now come up front, but there are a lot of other issues still to be resolved."

But Mr Geraghty said Government secretary Dermot McCarthy, who is facilitating the talks, has the skill and the knowledge to work with all concerned parties.

Talks on a new national pay deal were adjourned late last night after employers and unions failed to break the deadlock.

The negotiations stalled over differences between the sides over several issues, including the duration of any new deal, pensions, employment standards and the unions' demand for a special flat rate increase for the low paid.

The talks, which were adjourned at 10.30pm, are expected to resume at Government buildings today.

It had been hoped that progress towards a deal would be made when the sides returned to the negotiating table yesterday afternoon after a five-day break.

It is understood the employers' body, Ibec, was continuing to insist that any agreement should run for close to three years. But union leaders have been seeking a shorter deal because of uncertainty over inflation.