Fuel tax cuts will be factored into next pay talks, says ICTU

Protestersin Dublin during the fuel protest on Saturday. Fuel tax cuts will be factored into pay negotiations with Government over the next year, the Irish Congress of Trade Unions has said. Picture: PA/Niall Carson

Fuel tax cuts will be factored into pay negotiations with Government over the next year, the Irish Congress of Trade Unions (ICTU) has said, in response to the Government's package of aids to the fuel industry.

ICTU general secretary Owen Reidy said the €500m tax cut for the fuel industry has set a precedent for pay across the economy. “Trade unions across Ireland have taken note of events over the past week. While we are told the importance of being reasonable with pay demands, blockades and barricades have been rewarded with a €500m package of tax breaks," said Mr Reidy. 

The Government plans a €505m aid package to address unrest over fuel costs, including a new transport support scheme to help hauliers and those in the food and agri industries, which will be backdated to March 1. The Government has also announced a fuel subsidy for farming and fisheries, an extension of the excise duty cut to June while an increase in the carbon tax will be delayed.

Mr Reidy said the Government has repeatedly indulged business interests, and shown a willingness to rely on the public purse to do so.

“The Government has demonstrated, repeatedly, that the loudest lobby wins and that working people, who engage in good faith through proper structures, are rewarded with less than those who disrupt," said Mr Reidy.

“A Government that can find €500m for one industry at the drop of a hat has no credible case to make for restraint at the pay talks table. The Government has set a clear precedent. Workers will remember it.”

The current public sector pay deal is due to expire in June.

“We represent 800,000 workers who have seen inflation increase by around 20% over the past five years. Everyone is struggling with the cost of living crisis. We know that the first and best response to this is improved pay," said Mr Reidy.

“In failing to index taxation as part of Budget 2026, in rowing back on sick pay and the minimum wage, the Government has taken from workers, and as the events of the past week have shown, has given in to business interests.

“There are responses to the cost of living crisis which would help. Reductions in the cost of public services, double indexation of tax in Budget 2027, hastening the move from fossil fuels to renewable energy. We will continue to make the case for progressive, substantial responses that will benefit those who need it, not just those who shout loudest.

There are currently 44 unions affiliated to Congress across the 32 counties.

Chambers Ireland welcomes interventions

Meanwhile Chambers Ireland welcomed the Government’s interventions on fuel costs, and said the past week's disruption has compounded business and consumer concerns around fuel and escalating costs.

“The concessions that have been made by Government today represent an important intervention to address the considerable concerns of many businesses and households surrounding rising costs and the impact of inflated fuel prices over recent weeks. However, the chaos that has ensued on our roads, around our fuel depots, and in our town and city centres over the last few days has impacted business continuity and knocked public confidence," said Chambers Ireland chief executive Ian Talbot. 

"This must be the beginning of a longer-term, sustainable approach to ensuring energy affordability and addressing the rising cost of doing business. Our economic resilience depends on it.”