Unions seek clarification on proposed pay deal

Unions are to ask the Government to "tighten up" measures to protect workers' pensions in the proposed new national pay agreement…

Unions are to ask the Government to "tighten up" measures to protect workers' pensions in the proposed new national pay agreement put forward last night.

Taoiseach Bertie Ahern
Taoiseach Bertie Ahern

Following a meeting of the executive council of the Irish Congress of Trade Unions (Ictu) this evening, the unions decided to seek clarification on some aspects of the deal.

The employers' body Ibec issued a statement warning the proposals on the table are "at the very limit of what the country can afford" and said it would recommend them to its members.

It is understood the unions are generally satisfied with the pay element, which would give workers a 10 per cent pay increase in phases over 27 months.

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The unions also appear broadly agreed on measures to protect workers' rights.

However, sources said the unions wanted clarification on the pensions issue, as it was considered "not sufficiently tied down". One source close to the talks said the wording needed to be "tightened up".

"We are hoping to get it fleshed out some more."

It is believed Ictu wants a greater element of protection for workers in the event, for example, that a company chooses to close down a pension scheme.

A number of high-profile companies have sought to close their so-called 'defined benefit' pension schemes, which provide very favourable retirement benefits, to new employees.

Employers argue it has become too costly to maintain such schemes, particularly in the light of massive deficits in many such pension schemes at present - companies find themselves having to cover a shortfall in the funds in some cases.

The proposals in relation to pensions are quite weak and very disappointing
David Begg, Ictu

It is not expected, however, that any further clarification of these matters will be received before Friday.

Other strands of any new national partnership agreement, including the social element, have yet to be agreed and further talks are likely next week.

Talks at Government Buildings in Dublin adjourned last night without agreement on the pay proposals despite the intervention of Taoiseach Bertie Ahern.

Mr Ahern, accompanied by Tánaiste Mary Harney and Minister for Enterprise Micheál Martin, held direct discussions with the parties in an attempt to finalise an agreement.

Under the deal put forward last night, private sector employees would receive an increase of 3 per cent of basic pay for the first six months of the agreement; 2 per cent of basic pay for the next nine months (2.5 per cent for those earning €10.25 per hour or less); 2.5 per cent of basic pay for the following six months; and 2.5 per cent of basic pay for the final six months.

I think the proposals represent a reasonable compromise in all the circumstances
Turlough O'Sullivan, Ibec

In the public service, the pay conditions will be the same, "subject to an acceptable programme of change and modernisation to enhance the effectiveness of public services", a Government spokesman said.

On the pay aspect, payment dates vary for different groups of workers, but the first increase in the public sector would come into effect on July 1st.

Speaking before leaving for New York today for a UN summit on Aids, Mr Ahern urged both sides to accept the proposals, which he described as the "best best terms" that could be achieved.

"From my own discussions with both sides, I believe that they meet the demands of the unions for adequate pay increases, while providing certainty about pay costs for a reasonable period for employers," the Taoiseach said.

Turlough O'Sullivan, director general of employers' body Ibec, called for a compromise between parties. "In negotiations you never get exactly what you want," he said.

In a statement after this evening's Ictu meeting, Mr O'Sullivan said the proposals are at the very limit of what the country can afford.

"Our ability to trade successfully has taken a battering in recent years as business costs have increased so much faster here than in other countries," he said.

"We are entering very uncertain economic conditions and the somewhat shorter duration of the proposed agreement recognises this reality.

"The Ibec negotiating team will be recommending the proposals to members as the best that can be achieved at national level, subject to satisfactory agreement being reached on outstanding matters including measures to assist sectors of industry experiencing particular competitive pressures."