Tanaiste welcomes proposed pay deal

The Tánaiste, Ms Harney, this afternoon welcomed the agreement between unions and employers to proceed with the second stage …

The Tánaiste, Ms Harney, this afternoon welcomed the agreement between unions and employers to proceed with the second stage of the national wage agreement.

Unions and employers have become increasingly sceptical about partnership and there was a danger of agreement not being reached on the second stage of Sustaining Progress.

Ms Harney, who spent all last night at the negotiations, said: "We operate on a basis that's very different in Ireland but one that has been very successful. It has contributed to the economic success we have experienced and gives us the flexibility we need," she said.

The danger of the deal collapsing increased over union opposition to the proposed restructuring Aer Rianta but a deal hammered out yesterday between SIPTU and the Government effectively deferred the plan for a year.

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However, the legislation to effect the break-up will be brought forward next week. Ms Harney said the move was a major step forward for the country's travel industry.

"The new autonomous boards will be established on a statutory basis and their task will be to prepare for the growth of passengers in Shannon, Cork and Dublin and the future of aviation in the country," she said.

Additional reporting PA