Pay talks back on track as union boycott ends

THE NATIONAL pay talks are back on track after the country's largest trade union cancelled its seven-week boycott of Sustaining Progress and agreed to re-enter negotiations.

SIPTU raised question marks over the entire future of social partnership in March when it dramatically pulled out of the next phase of pay talks just as negotiations were about to start.

The largest crafts union, the TEEU, quickly followed suit, effectively crippling national negotiations aimed at agreeing national pay deals for the next 18 months. The TEEU has now also agreed to re-enter negotiations after continued informal contacts between the Irish Congress of Trade Unions (ICTU) and the Taoiseach's Department led to Government assurances on job conditions being confirmed.

SIPTU originally pulled out of the talks after Tánaiste Mary Harney said her party's participation in Government depended on the successful break-up of Aer Rianta and CIÉ two delicate and sensitive areas opposed by SIPTU.

However, a statement from both unions yesterday said they were now amenable to re-entering talks on part two of Sustaining Progress. According to the statement, the decision to return to the table followed the receipt of Government reassurances "with regard to workers' rights and interests in the context of change in the transport and aviation sectors".

The unions also said they had secured an agreement from the Government to engage in discussions to ensure that workers' rights and interests in the wider economy were protected as well.

Both unions also insisted that if negotiations resume, there would be no prospect of them agreeing to a pay freeze as suggested by the president of the Chambers of Commerce of Ireland especially since the economy is expected to grow at a rate of 3.7% for this year and 4.5% for next year.

The first pay deal under Sustaining Progress delivered a 7% pay deal, but the second phase is unlikely to see anything close to that figure agreed.

A Government spokesman said no dates had as yet been set but confirmed that meetings aimed at re-establishing pay negotiations would resume sometime next week.

The spokesman confirmed that on foot of ongoing contact with ICTU "assurances previously given by the Taoiseach and other ministers concerning employment conditions generally and in State companies have been confirmed".