It is difficult to judge what is going on in the public sector pay talks between the Government and trade unions, beyond the obvious point that the central issue is proving difficult. From what we know, the opening offer from the Government side was on the basis of inflation forecasts for next year which look optimistic. The unions are seeking a buffer to ensure members do not fall behind if price rises accelerate. A middle route is possible, but is clearly proving difficult to find.
With some goodwill on both sides, a deal looks possible, though this will require the unions to relent on some of their demands, as well as the Government coming some of the way to meet them. This should be achievable while still safeguarding the public finances, but will also require productivity improvements in areas of the public service in return for some portion of the increase. There may be some room for manoeuvre in the area of local bargaining where additional pay is offered in return for productivity measures.
It is also important that in a final agreement the Government offers a higher level of increase to the lowest paid staff. Low paid workers in the public and private sectors are those most exposed to cost-of-living pressures. Reports suggest that no additional concessions have been offered by Government in this area to date. This needs to happen.
The Government side was too slow to get the talks off the ground in the first place and thus bears some responsibility for the tense atmosphere. The traditional choreography of waiting until the budget is out of the way before entering talks serves no useful purpose. There is no reason why the talking should not have started in earnest much earlier.
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However, the union side is also open to criticism. Whatever about an initial day of protest, the continuation of a work-to-rule as the talks progressed was unnecessary and has disrupted public services. Plans for another day of strike action and follow up disruptions have only upped the ante further.
Unions are right to fight for their members, but not to claim that public servants have been in some way uniquely disadvantaged over recent years. They no doubt feel that the Government may be more likely to offer more when faced with threats of further disruption. After all, it worked for the truckers. But as well as holding the public hostage, this also risks moving the talks into what Kieran Mulvey has called “a serious war of attrition” which is hard to end. As a former director general of the Workplace Relations Commission, he knows what he is talking about.
Cool heads and a reasonable compromise can see a deal done. If uncertainty is a problem, then a shorter time-frame for a deal might be considered. But it is time to find a middle ground.
