UNION LEADERS have said the small reduction in inflation last month will not affect their demand for pay increases of about 5 per cent, currently being sought for the private sector.
The chairman of the private sector committee of the Irish Congress of Trade Unions, Jerry Shanahan, said the reduction in inflation from 4.4 to 4.3 per cent represented only a “snapshot”. He said one swallow did not make a summer. Speaking at Government Buildings at the start of the fourth day of renewed talks on a new national pay deal, Mr Shanahan said the inflation figure which unions were projecting for the end of the year was still close to 5 per cent.
Siptu president Jack O’Connor said it was better that there had been a marginal reduction rather than a marginal increase in inflation. He said unions would have to see what they could glean from the trends reflected in the new figures.
Asked whether the reduction in inflation last month would result in a moderation of pay demands in the talks, Mr O’Connor said: “We have to see what the figures mean, figures fluctuate from month to month. “If the trend is positive from the point of view of controlling inflation it would be helpful from the point of view of making an agreement,” he said.
Ictu general secretary David Begg said the inflation trend appeared to be steady. He said the European Central Bank was still forecasting that inflation would remain high and that this was something which would have to inform the unions’ consideration.
The director general of the employers’ group Ibec, Turlough O’Sullivan, said that the impact of the new inflation figures had to be helpful for the national pay talks.
He said that the trend in the inflation rate over the last few months had been downward and that most commentators were predicting that the figures for next year would be a lot lower.
Mr O’Sullivan said that he did not know whether the new lower inflation figures would make any difference in the negotiations on a new pay deal over the coming days.Asked about the unions’ comments on the inflation figures, Mr O’Sullivan said that it was a bit late in the process for posturing.
“It is time we faced up to the reality [that] we have a couple of days in which to do a national agreement and if people want it they should get on and do it. Inflation has been coming down steadily. It is a global problem and I do not think the right thing for Ireland and for people still in jobs is for pay to chase inflation . . . everybody now understands that that would make the situation worse and accelerate job losses.
Talks on a new national pay deal are expected to continue over the weekend.
Cheaper food and fuel see inflation drop to 4.3%