Unions attack Government over cutbacks

The Impact and Siptu trade unions have accused the Government of forcing ordinary workers to take the brunt of the cutbacks announced today.

Impact, which is the largest in the public service sector, said it would consult with its members before reacting to Government plans to introduce a pensions levy.

Today's plan means a public servant earning €770 per week before tax will now have to pay an extra €53 pension per week in addition to existing tax, pension contributions and the new one per cent income levy,  Impact general secretary Peter McLoone said.

He said while the union accepts measures had to be taken to address the economic crisis, business leaders have not been asked to take sacrifices comparable to those being imposed on lower-paid workers.

"Workers are angry that the people who caused this mess have largely walked away scott-free, some of them underwritten by money taken out of the pockets of ordinary taxpayers, while workers in the public and private sector are being asked to pick up the tab," Mr McLoone said.

The union's Central Executive Committee will meet tomorrow to discuss its response to the pensions levy.

Siptu general president Jack O'Connor said the failure to agree "a social solidarity pact" with the Government was regrettable.

He said workers were again being asked to shoulder the whole burden of an "economic crisis created by those at the top of society". He said the pensions levy "discriminates disproportionately against middle and low income workers"

However, employers' group Ibec welcomed the Government measures, which it said were necessary to put the economy back on track.

Ibec director Turlough O'Sullivan said it was "only fair that greater contributions are made by public servants to reflect the value of their pensions".

However, he called on the Government to introduce measures to support businesses and encourage It is now important job creation. "Unless substantive action is taken to support economic activity in the real economy the public finances will deteriorate even further."

The Association of Garda Sargeants and Inspectors (AGSI) claimed the pay cuts for its members were "totally unfair and unjustifiable".

AGSI general secretary Joe Dirwan said some members' incomes could be reduced by up to €6,000 per year. "The problems have been caused by the greed of the banks and yet the Government is preparing to bail them out at great cost to dedicated public sector workers," he said. "The upper echelons of the public service have once again got off lightly."