Employers, unions and the Government are preparing to make a final push this weekend to secure a new national pay deal.
Talks between the parties were continuing yesterday at Government Buildings, with one session devoted to the issue of public sector pay. The Government is demanding meaningful improvements in the way public services are delivered in return for basic pay increases to staff.
With the talks entering their final phase, nearly four months after negotiations began, a num- ber of critical issues remain to be decided in relation to both the public and private sectors. Not least is the question of pay rates, but it is understood that no figures have yet been discussed in formal talks between the parties.
It is generally speculated that a basic annual increase of between 4 and 5 per cent is on the cards, but this tends to be the last item finalised in negotiations. Other issues still up for negotiation include the duration of any new agreement, measures to boost pension provision and the question of a local bargaining clause.
Private sector unions have made the inclusion of such a clause, which would allow them to pursue "top up" pay increases from highly-profitable em- ployers, a priority demand. However, employers' body Ibec is strongly opposed to the measure, arguing that unions can have a national deal or local bargaining, but not both.
In the event of such a provision being ruled out, alternative proposals are likely to be pursued by the union side.
These could include a push for more employers to make profit-sharing options available to workers, and for new mechanisms to encourage employees to co-operate with workplace change in return for additional pay.
Another issue yet to be decided is the duration of any new pay deal. Employers entered the talks seeking a three-year agreement, a stance supported by Taoiseach Bertie Ahern.
Increasing uncertainty about future inflation trends, however, may help swing the argument in favour of the unions' preference for a two-year deal. In any event, the intention is to have a two- or three-year pay deal within the overall framework of a 10-year social partnership agreement.
There is already a consensus that something needs to be done to avert a pensions crisis, but employers do not share the Irish Congress of Trade Unions' support for the introduction of mandatory pensions.
Members of Ictu's executive council have been asked to be available throughout the weekend, in the hope that an agreement can be finalised within the next few days. An agreement on measures to underpin employment standards is also due to be finalised as part of any deal.