How the social partners handle the very real threat to our economic progress arising from unexpectedly high inflation will test the capacity of the partnership process to deal with a crisis, the Irish Congress of Trade Unions (ICTU) general secretary, Mr Peter Cassells, told the plenary session of the PPF.
He said all had to face a potential crisis "in a problem-solving and non-confrontational way. We also have to find ways of improving incomes and living standards that are not in themselves inflationary".
ICTU proposals on inflation include reducing duty on petrol, diesel and heating oil, reducing bus and train fares by increased subsidies to CIE, reducing VAT on selected items, increased competition, an end to "closed shop" practices in the higher professions and intensified price surveillance.
It is seeking compensation for current inflation levels by the introduction of a savings bond for workers and pensioners. This could be invested in a pension scheme, a "learning account" or Government stock. It wants accelerated increases in tax credits, workers on the minimum wage to be taken out of the tax net and increases in social welfare.
"Non-inflationary" measures proposed by the ICTU to improve workers' earnings include extension of profit-sharing and gain-sharing schemes, which could be promoted by extra tax relief in the December Budget. It also proposes a review of annual leave, maternity and parental leave and the provision of "good quality and affordable childcare facilities".
"It is reasonable in the light of the reduction in corporation tax and high levels of profitability being enjoyed by business, to increase employers' PRSI as a means of subsidising the cost of childcare, extending paid maternity leave and introducing paid parental leave," it said.
ICTU is also calling for the Housing Forum established under the PPF to be given more powers to tackle the housing crisis, "which is the biggest source of pressure on thousands of young workers who cannot afford a home", as well as "radical changes in public transport to reduce time people spend getting to and from work". Improved healthcare, particularly for the elderly, was another ICTU priority.