Ahern warns failure of pay talks could damage economy
Speaking at the IMI conference in Killarney, Mr Ahern said getting negotiations back on track remained one of his most important goals.
“This is perhaps one of our most immediate challenges. The outcome should be of real concern to all of us. Because, depending on our success in reaching an agreement and its shape, we have the opportunity to move our country forwards or backwards,” he said.
Negotiations on the next stage of a national pay deal formally began two weeks ago but have been stalled by the refusal of the country’s largest union, SIPTU, to enter talks.
The union decided to boycott talks following comments by Tánaiste Mary Harney that her party’s participation in Government depended on the successful break-up of Aer Rianta and CIÉ.
The country’s largest craft union the TEEU has also pulled out of the negotiations.
SIPTU president Jack O’Connor indicated that his union’s participation in talks would not just depend on the CIE/Aer Rianta issue but also required substantial assurances from the Government that social partnership could deliver improved employment rates and standards.
SIPTU sources last night indicated the union would study Mr Ahern’s comments in detail before reacting in any public way.
Mr Ahern’s comments come just a day after his representative Dermot McCarthy met with ICTU boss David Begg in a bid to bring all sides back to the table. Following the meeting both sides indicated that it had been made clear that confidence in the social partnership process was the major stumbling block.
Further meetings between both sides are expected while informal contacts between the Government and ICTU will continue.
While indicating that a compromise was possible, Mr Ahern yesterday warned that Irish competitiveness could not allow rampant increases in labour costs.
