THE LEADER of the country’s largest trade union has said workers would not stand for further pay cuts and welfare reductions as proposed by outgoing European Central Bank executive board member Jürgen Stark.
Siptu president Jack O’Connor said yesterday it was a “good day for Europe” that Mr Stark had resigned from his post.
Meanwhile, the head of the largest public service trade union has said additional pay cuts for State employees are unwarranted.
Impact general secretary Shay Cody also said that further public service pay cuts, as suggested by Mr Stark, were unlikely so long as the Croke Park agreement continued to meet Government targets, which had been agreed with the International Monetary Fund, European Commission and European Central Bank.
Mr Cody said the IMF and commission had last week published positive reports about the State’s progress regarding the financial bailout. He said that assessments covered payroll savings, reforms and staff reductions implemented under the Croke Park agreement.
Under the Croke Park agreement the Government has given a commitment that there will be no further pay cuts or compulsory redundancies in the public service before 2014 in return for staff co-operation with reform.
“None of the assessments from the troika, of which the ECB is a part, has called for pay cuts . . . this is not surprising when, in its first year, the agreement has delivered payroll savings of €290 million – 30 per cent above the target of €223 million,” said Mr Cody.