Sir, - The new national pay agreement which replaces the PCW represents a victory for the Public Service unions at the expense of the Irish taxpayer, and highlights the hypocrisy of these same unions.
Both the Government and the unions stand condemned as a result of the latest deal. The Government, within clear sight of a general election, has once again bowed to powerful union muscle and failed in its duty to put the country's interests first. The pay freeze, which the Government had earlier been demanding, was abandoned without explanation. And the Public Service unions' insistence on the same increases as the private sector cannot possibly be reconciled with their professed desire to do something for the unemployed.
Over the 1987-1995 period, the rate of pay increase in the Exchequer funded public service has been far higher than the private sector. As greater pay increases for those in the public service require higher taxes to pay for them, that means less ability to finance tax reforms. The net result has been fewer jobs created, more unemployment, and a decline in overall competitiveness. This trend is set to continue under the new agreement, when special pay awards for the public service are taken into account.
Furthermore, the Irish economy simply cannot afford any further pay awards to public servants at this time or in the foreseeable future, given the need to reduce our massive borrowing and debt levels. Any increases now will only further bankrupt our nation and be grossly irresponsible.
The Government should have insisted on a public service pay freeze for three years under the new accord in return for significant tax cuts. This would have kept Ireland on course to meet the Maastricht terms for monetary union and helped to generate employment in the private sector.
Instead, the net result of the new deal will mean unemployment will continue to escalate, our competitiveness problem will deteriorate further, and our claims to membership of a single currency will appear less and less sustainable. - Yours, etc.,
Civil Servant,
Department of Enterprise and
Employment,
Dublin 2.