Unions slam calls to axe public sector jobs

Demands for Government to slash a fifth of public sector jobs were rubbished by unions which tonight claimed the move would plunge the economy in to a deeper recession.

The Irish Congress of Trade Unions and Impact said a cut in civil servant posts would have a massive implication on spending.

As the number of people claiming unemployment benefit soared to 291,363, the unions rejected calls by employers’ group Ibec for 20% of public sector jobs to be axed because of the economic crisis.

Ibec director general Turlough O’Sullivan has claimed it would be ’wrong and unsustainable’ if there were no losses when the private sector had cut some 100,000 posts in the last 12 months.

But David Begg, Congress general secretary, said if the reaction in Ireland is for a sixth of the workforce to cut back on its spending power, the implications for the rest of the economy would be significant.

“It will be the direct opposite of a fiscal stimulus,” said Mr Begg.

“If that happens in the public sector what do you thing think the consequences will be in the private sector. Pretty much else every employer in the private sector will take the lead of the government and we will have a national deflation rate spiral as a result of all of that.”

Impact’s general secretary Peter McLoone said public service pay cuts would likely trigger a downward recessionary spiral by driving down wages in the private sector too, and sucking demand out of the economy.

“It’s inconceivable that any employer would agree to increases in a situation where the Government was cutting pay,” he said.

Over the last two days Taoiseach Brian Cowen has held a series of meetings with the social partners in a bid to tackle the worsening economic crisis.

Mr McLoone also said sacrifices from workers and public service users would have to be matched by contributions from other sectors and social partners, including business.

However, public service union Impact assured its members that it will not negotiate public service pay cuts with the Government.

Mr McLoone said he did not have, would not get, and will not seek a mandate for pay cuts from his 60,000 members.

“The unions have a responsibility to explore and embrace the measures required to protect jobs, incomes, public services and the economy in these difficult times,” said Mr McLoone.

“But that doesn’t extend to pay cuts, which would likely deepen the recession.

“Impact members can be absolutely certain that if they see me walking in and out of Government Buildings it is emphatically not to discuss pay cuts.”

Mr McLoone warned that any significant changes to the Towards 2016 interim pay agreement, accepted two months ago, would require another ballot of union members.