SIPTU leadership meeting today to consider its stance on new pay deal

The national executive of SIPTU, the State's largest trade union, meets today to discuss its attitude towards the pay and taxation…

The national executive of SIPTU, the State's largest trade union, meets today to discuss its attitude towards the pay and taxation package available if it signs up for another national agreement.

In the past SIPTU's leadership has always endorsed the centralised deal struck with the employers and government, but it may take longer to make its mind up on this occasion.

It now seems unlikely that the social inclusion measures will be completed early enough today for SIPTU to assess them properly. Equally importantly, executive members will want to take grassroots soundings before making up their minds on a deal which is already proving divisive.

Many private-sector unions are unhappy at the lack of a local bargaining clause in this agreement and resent the extra 3 per cent being awarded to teachers and other public servants. Although technically this is a "catch-up" award that has nothing to do with the agreement, it is seen as 18 per cent versus 15 per cent over the next 33 months.

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Low pay remains a serious problem. The measures to reduce the burden of PRSI and health levies will undo some of the damage of December's Budget and mean that people on the national minimum wage will receive 20.5 per cent more in take-home pay.

The SIPTU regional secretary, Mr Jack O'Connor, who represents members in the midlands and south-east, said yesterday: "The miserly approach of employers on low pay has effectively sabotaged something that had potential."

That SIPTU is prepared to consider it is due to last-minute adjustments in the drafts on taxation and on pay relationships between the private and public sectors. Initially, the Government had indicated that the 10 per cent reduction in tax was inclusive of Budget 2000, which was pitched at high-income earners.

Late on Tuesday night that commitment was amended to read: "The increase in net takehome pay, excluding pay increases, will average up to at least 10 per cent or more for taxpayers, taking account of Budget 2000 and the next three budgets."

There is also a commitment to weight the package towards the low paid and take "at least 80 per cent of taxpayers" out of the top rate.

Another key area for SIPTU is gain-sharing. The taxation document acknowledges the need for "ESOTs (Employee Share Option Trusts), gain-sharing, profit-sharing and other financial employee incentives". Government representatives will prepare proposals for the next Budget.