The public sector will always be better off than the private sector

A pay increase of 2% per annum for three years is an odd way to begin a reform programme.

Public Expenditure Minister Paschal Donohoe declined to confirm or deny reports that he is willing to offer a pay increase of 6% over three years to public sector workers, but others did not hold back.

Mr Donohoe did say, however, that any deal offered by him will have to be “affordable and fair” to all taxpayers as well as state employees.

But we should not forget that the “bogus” benchmarking exercises of over a decade ago were based on underpinning reforms in the public sector. The out of control public pay bill eventually contributed to the economic crisis.

The bust resulted in hundreds of thousands of folk in the private sector losing their jobs. For some, it meant they will never work again. It also resulted in tens of thousands of our graduates and our skilled craftsmen moving overseas for work. Last week, at the hyperbole-fest of the teacher union conferences, one speaker demanded that the money “stolen” from public sector employees had to be fully repaid. To many in the private sector, it is symptomatic of public sector attitudes.

If there is a possibility of tax reductions which would benefit everyone, our public sector unions want none of it. Pay increases for some and tax cuts for all are together not achievable.

Mr Donohoe should wait until the Pay Commission issues its report. By failing to rule out any pay increase or even discussions in advance of the report, Mr Donohoe is indicating that a reform of the public sector will involve pay increases. Were that to happen the alleged rift between private sector and public sector workers would be cast in stone.

It is a rift that will have been created by the public sector and its belief in its own superiority over those who actually make the economy work.

After all, almost 75% of those in employment work in the private sector.

The pensions that public sector employees enjoy are far superior to the vast bulk of people in the private sector.

The public sector will always be better off. They will be better off without any of the risks associated with working in the private sector.