THE GOVERNMENT infuriated public-sector unions by first appearing to agree an alternative to pay cuts and then abandoning that position. But the lesson does not appear to have been learned. Contradictory positions emerged concerning pay cuts for employees of a wide range of commercial semi-State bodies. What was going on? Were different Government departments deliberately briefing against one another? Did one Minister not know what another was saying? Was the Government really trying to destabilise the whole trade union movement?
Blame for the shambles that emerged from the public service pay talks was laid on officials from the Departments of the Taoiseach and Finance because of their conflicting views of what was acceptable or affordable. A lack of coherence was certainly evident, with Taoiseach Brian Cowen initially signalling a willingness to consider 12 days of unpaid leave, while officials from the Department of Finance argued that the required savings could not be made through that mechanism. We all know what happened.
Then, last weekend, official sources spoke to the press about a need for pay cuts within the commercial semi-State sector. The fraught and delicate state of Government-trade union relations should have counselled extreme caution. The budget script was barely dry on the page when the Government seemed to be moving to engender unrest again. The diversity of the companies involved, their varying profitability and their importance to the economy, all suggested that a one-size-fits-all approach would not work. Industrial unrest could, however, be guaranteed if across-the-board cuts were introduced. There was no knowing what the knock-on effects might be.
The Minister for Finance Brian Lenihan told the Dáil yesterday that there was no policy to pursue pay cuts for staff in the semi-state sector. But, the episode has generated a new and unnecessary source of friction with its employees and the trade union movement. It echoes an earlier attempt by some ministers to reopen discussions on public service reforms, even as pay cuts were being pushed through.
That is bad politics. There can be no place for ministerial solo runs on issues which could destabilise the fragile acceptance of such a harsh budget last week. Less still can Ministers be speaking out of both sides of their mouths at such a delicate time.