Cowen: Unpaid leave deal will not deliver savings target

A DEAL to get the public sector payroll down by bringing in a raft of unpaid leave days would not generate the savings needed, Taoiseach Brian Cowen warned.

Clearly stung by accusations he had caved in to union demands on the issue, Mr Cowen insisted further concessions would be needed to secure a binding agreement.

Opposition leaders responded by accusing the Taoiseach of creating confusion and allowing his pre-budget wage strategy “unravel” as he backed away from union demands for the trade-off.

Public sector unions had said bringing in 12 days’ unpaid leave would save €800m from the annual wages bill, but that figure was disputed and Mr Cowen said the Government’s objective was still a reduction of €1.3bn next year.

Labour leader Eamon Gilmore attacked the Taoiseach’s “muddled” approach, saying he had left it too late to start negotiations as a deal would need to be in place before next Wednesday’s budget statement.

Fine Gael leader Enda Kenny ridiculed the Taoiseach’s stance saying it was both unfair and incompetent.

“It seems as if the Government has abdicated its responsibility to sort out the economic mess into which it has led us.

“What the Taoiseach is talking about is grossly unfair. Where is the fairness in a situation where a person on the minimum wage will have the same proportion cut as somebody on €100,000, and give up 5% of his or her income?

“How is it fair that ordinary families with children at school will suffer as a consequence of this? How is it fair that children who are vulnerable will be at risk now because of less social work hours being worked by social workers and those in the social services?” he asked in the Dáil.

Despite speculation unions had called off the national strike planned for today because they expected a firm deal on exchanging unpaid leave days for the lifting of the threat of an enforced pay cut, Mr Cowen said the move alone could not underpin an agreement.

“Those savings have to be made because the Government does not have the money to pay the public sector pay bill as it is constituted,” he told the Dáil.

Finance Minister Brian Lenihan also refused to rule out cuts in public sector pay.

“Nothing is committed at this stage other than that we will secure €4bn of savings in this budget.

“Clear and measured savings must be secured if there is to be an agreement,” he said.