Talks set to move quickly but a positive result looks unlikely

By Stephen Rogers

Wednesday, November 25, 2009

THE most demoralising, and unfortunately one of the most common, statements an industrial relations reporter hears while interviewing trade unionists entering pay talks at Government Buildings is, "it’s early days".

It means that for at least a week – more likely two – that hack can expect to trudge lengths in front of the ornate gates for hours on end, only to be told each evening the second most demoralising statement to their ears – "nothing new to report".

As public sector unions this afternoon return to Government Buildings to lock horns on the future of the public service and the threatened pay cuts to their members, the sense of urgency will negate the use of either utterance.

With the budget a fortnight away, these talks will be quick and uncompromising. If they fail, public services will grind to a halt once again.

In a press conference yesterday, Peter McLoone, chairman of the public service committee of the Irish Congress of Trade Unions, set a clear path for the way he believes the talks must proceed.

"The union side will propose at the start of the renewed talks that the negotiations continue every day and go into the weekend if necessary.

"Our energies are concentrated in achieving an agreed way forward over the next four to five days and nights. If the negotiations fail, it will be necessary for the public service unions and their members to take further action on December 3."

So what needs to happen? The Government must convince unions not only that it has a clear, sustainable and acceptable vision for restructuring and downsizing the public service by 2014, but also that public sector workers should accept more than a 5% cut in overall earnings.

Clearly, Mr McLoone was not engaging in overstatement when he said the talks would be "difficult, challenging and complex".

They will not be helped by the Government’s opinion that pay and pension cuts form the best option for achieving a €1.3bn cut to the €20bn public sector pay bill in 2010 while unions are adamant they suffered enough with the pension levy earlier this year.

One side will have to make concessions and it is likely, given the budget’s proximity, the biggest will be expected from unions. However, the Government must ease the pain for its 310,000 employees.

It is widely anticipated it will propose "bridging" measures whereby pay cuts next year would be temporary. However, as was made clear by many at yesterday’s strike, that is not enough. There is a view that unless the rich in society contribute to the economic recovery, ordinary workers should not be burdened.

The Government has made it clear it will not increase taxation.

Therefore it is likely, next Thursday, schools will close, hospitals will turn away all but the most urgent and those trudging in front of Government Buildings will be the disaffected workers who normally work inside.

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