McCreevy wants a return for benchmarking rises

FINANCE MINISTER Charlie McCreevy will warn unions this morning that he wants a return for his money before paying out any more benchmarking wage rises.

The minister will make it clear that benchmarking is not just an ATM machine handing out €1.2 billion in pay rises to public sector workers, according to government sources.

Public service employees will have to deliver on their modernisation and industrial peace promises to get the entire nine percent pay rise, he will tell union chiefs.

As the benchmarking process comes under fire for failing to deliver value for money, the minister will point out that he met with the heads of all government departments recently to lay out clearly the productivity levels he expects in return. Already 25% of the benchmarking salary increase has been paid, backdated to December 2001, but the minister says he wants a rigorous verification of whether the commitments are being lived up to before the remainder is handed over.

Memorably, former Irish Congress of Trade Unions chief Joe O’Toole said benchmarking was similar to an ATM machine, as it was guaranteed to give money, but Mr McCreevy is set to dispel that myth. “In effect, this is a very substantial pay increase and there is a commitment on the unions’ part to a modernisation process and an industrial peace element,” a government source said.

Deliberately referring to disputes in the Department of Agriculture and the strike by public health doctors, the minister will set down a clear marker on the calm industrial climate that is required.

Along with the Taoiseach and the Tánaiste, Mr McCreevy will address trade union chiefs and the other social partners at a conference under the new national pay deal, Sustaining Progress.

The meeting comes at a time when relations between the Government and the unions have been damaged by the decision to break up Aer Rianta.

Also, this morning, business representatives will complain that local authority rates are set to rise dramatically to pay for benchmarking pay awards to council workers.

According to the Chambers of Commerce of Ireland, the business sector will be forced to pick up a €225 million tab for benchmarking pay awards to 35,000 local authority staff.

Already, commercial rates have risen by up to 25% this year.

CCI president Mark Staunton said last night the real cost of benchmarking and social partnership pay increases for city and county council staff will be 225 million between 2003 and 2005 alone.

“This inevitably means that commercial rates are set to soar. As yet, funding has not been provided from the Exchequer to local government to cover this massive cost, and business, as the only sector that pays commercial rates to local authorities, will be forced to pick up the benchmarking bill,” he said.

“We would seriously question the Government’s commitment to maintaining Ireland’s competitiveness when it is happy to allow already struggling small and medium-sized businesses to carry the burden of benchmarking,” he said.