Reform of public service may centre on the 'job for life'

ANALYSIS: Yesterday's plan is the biggest reform of the public service in the State's history, writes MARTIN WALL

ANALYSIS:Yesterday's plan is the biggest reform of the public service in the State's history, writes MARTIN WALL

THE GOVERNMENT's plans to overhaul the public sector outlined yesterday represent probably the most fundamental reform in this area in the history of the State.

However, many of the really crucial changes, such as those in relation to employment levels, redeployment, voluntary redundancy initiatives and possibly even the terms and conditions to apply in some cases, will not emerge until next summer.

This area has in effect been left by the Government to be considered by the new special group on public service numbers and expenditure programmes, which is to report back to the Cabinet next June.

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The Irish public sector is one of the most highly unionised areas of the economy, and introducing change on the scale envisaged by the Government will not be an easy matter.

Traditionally, unions have argued that pay was the grease on the wheel of public sector reform. But within an hour of the official launch of the reform programme yesterday evening, this was ruled out by the Taoiseach.

Last year, after the benchmarking report recommended no special increases for the vast bulk of public servants, some unions warned of the impact the failure to provide additional money could have for Government reform plans.

This stance has changed over recent months as the public finances worsened, and it was notable that no union yesterday raised the issue of pay for change.

However, this does not mean that the question of higher pay is totally off the table.

For example, one of the Government's key areas of reform is the establishment of a unified public service which would see a breaking down of the traditional barriers between the Civil Service, the local authorities, State agencies and the HSE.

Under the Government's proposals there would be greater flexibility of movement between staff in the various sectors.

However, some union sources maintained that at lower levels, pay rates and conditions for staff in local authorities and the health sector were slightly better than those applying in the Civil Service.

If such employees moved into the Civil Service to work alongside existing personnel, would they retain such superior conditions - however slight they may be - or would there be demands to raise the bar for everyone else?

Many public service unions yesterday reacted positively but with a certain caution to the Government's reform proposals.

In reality, most will only show their hand when they see the precise nature of the changes to come, particularly those to be recommended by the special committee under the chairmanship of economist Colm McCarthy.

This group will have free rein to examine virtually all aspects of current expenditure in the public service, and unions will watch carefully to see whether it turns its attention to the hugely sensitive area of terms and conditions.

Effectively, the 350,000 staff in the public sector have job security for life - subject to the disciplinary codes.

Involuntary redundancy, which is becoming an increasingly common feature for private sector workers, is not really a prospect for public servants - whatever the economic conditions. However, some Government sources yesterday suggested that this area could be examined for future entrants.

One highly placed source said that the issue of tenure for new recruits "could be in the frame".

The source was adamant that even if the group did recommend changes in this area, this did not mean that they would be backed by the Cabinet.

However, even talk about the possibility of such reforms is highly controversial for the trade unions.

One senior trade union figure said last night that while the issue of pay-for-change may not be on the agenda for the moment, any threat to tenure or the highly valued and lucrative defined benefit pension scheme would prove to be "a lightning rod".

He said the unions would not tolerate any move to introduce a new "yellow pack" grade, as this would represent a serious downgrading of public sector employment.