IBEC: Govt must tackle over staffing in public sector

The head of employer organisation IBEC has called on the Government to show “clear leadership” in order to help secure a new national pay deal.

Speaking on RTÉ radio today, IBEC Director General Turlough O’Sullivan called on Taoiseach Brian Cowen's Government to bring the social partners together in order to secure a new agreement.

He also called on the Government to deal with what he described as "the significant over staffing in the public sector".

Four weeks ago negotiations between the social partners broke up without agreement.

As a result for the first time in over two decades unions have lodged hundreds of individual pay claims with employers.

Recently, Government officials have made efforts to bring the sides back together in a bid to agree a new national pay deal.

Mr O’Sullivan said that while some leadership has been shown by the Government in its decision not to accept pay rises to ministers, politicians and some senior civil servants they need to show more.

Mr O'Sullivan said: "They need to grab this economic crisis by the throat and bring the social partners together, make it clear that in the national interest we need a national agreement that is moderate, that will not make us less competitive and will help protect as many jobs as possible."

He added that the Government must also “cut their own cloth to suit their measure” and address the “significant over-staffing” in the public service.

“If it can be addressed at a time like this when will it be addressed?” he asked.

Ireland, he said was on the border of a crisis, and when employers sit down with the Taoiseach he said that they would be asking for an agreement that ensures that the public service would not be a noose around the neck of ordinary taxpayers.

He added that employers will be realistic in a time when the Government’s own tax intake is falling.

Mr O’Sullivan said that the economic situation is “worsening by the week” and that the current economic problems are “global”.

Ireland is an open economy that exports 85% of what it makes.

Mr O’Sullivan said that there is an onus to try to be competitive, but added that Ireland is in “pretty bad shape.”

He said that in previous talks employers had not made any offers, and he said that the unions had made no claims.

He said employers were advocating a 21-month agreement, to last to the end of 2009, with a substantial pay pause including the Government taking a very substantial pay pause for the public sector.

"That pause would be followed by a rise in low-single figures. While no offer was made it was employer’s view that it would be best for the economy if pay increases did not to try to chase inflation. "

“If we chase inflation then we make inflation worse,” he said.

He said that small and medium sized businesses could not be asked to do anything for the lower pay bracket during tough times.

He hoped that the Government would "be able to do something extra for the lowest paid in terms of taxation or PRSI".