‘Strikers, count your blessings’

By Conor Ryan, Political Correspondent

Wednesday, November 25, 2009

FINANCE Minister Brian Lenihan has told "uniquely protected" public service workers they should count their blessings and pull back from further strikes.

But he strongly hinted pay cuts in next month’s budget will be layered so the higher paid will suffer most.

Mr Lenihan said consumer prices are expected to fall by 6.6% in the next year and this will provide a buffer zone for equivalent wage cuts.

Mr Lenihan told a special Dáil debate the public service had not suffered as badly as those in private industry.

"It is important to remind ourselves that public servants enjoy a job security and a guaranteed pension that is unique in the workforce at present.

"Their experience during this recession is far more benign than that of many in the private sector," he said.

Mr Lenihan also confirmed the much anticipated report of the Review Body on Higher Remuneration in the Public Sector has recommended "substantial pay cuts" in pay levels for the 4,000 best paid public servants.

He said the report will be considered by the cabinet and affect 4% of the State’s total wage bill.

Labour Party leader Eamon Gilmore criticised the minister. He said the public sector had been demonised.

And Mr Gilmore accused the Government of cynically encouraging yesterday’s strike to stoke the war between the public and private sectors.

"All last week, the Government sat on its hands as this strike approached and made no attempt to avoid it. It was as if the Government wanted the strike to take place, to save the day’s pay and to allow it to blow over before resuming negotiations. Nothing could be more cynical," he said.

The Labour Party was criticised by Sinn Féin for passing the picket of staff outside the Dáil. Mr Gilmore told an Oireachtas – emptied but for a skeleton staff, TDs, journalists and military police – that public servants were being belittled by the Government’s policy.

Mr Lenihan later accepted points from the Labour Party benches that there was scope to cut wages from the top.

He said 3% of public service salaries were in excess of €100,000, these accounted for 9% of the pay bill.

Similarly, 10% of salaries were in excess of €70,000 and this was 20% of the pay bill.

Mr Lenihan said cuts could be tiered to reflect this disparity.

But the minister could give no commitment on protections for the lower paid.

He agreed with Fine Gael finance spokesman Richard Bruton, who said cuts without dramatic changes in efficiencies were useless.

Mr Bruton said social partnership should help bring about change and not provide opportunities to resist it.

He said an entirely new system for determining public sector budgets should be developed to encourage managers to earn budgets.

He called this the BART system – to Bid, Account, Report and have Tools to deliver results.

This story appeared in the printed version of the Irish Examiner Wednesday, November 25, 2009