Ahern vows to tackle inflation

TAOISEACH Bertie Ahern yesterday said he would work with unions and employers to combat inflation after both groups voted to endorse the new partnership agreement.

The umbrella group, the Irish Congress of Trade Unions, ratified the deal despite widespread opposition from both union and community groups.

ICTU general secretary David Begg said the Sustaining Partnership deal, which offers a 7% pay rise over 18 months, would preserve living standards as inflation appeared to be a downward trend.

But a number of large unions, such as the TEEU, Mandate, the ATGWU and the Irish Bank Officials’ Association, believe the increase is too low to keep pace with inflation.

Economists are divided over what direction inflation, which is running at 5.1%, will go due to uncertainty over the Iraq war and the likely effect of increase Government charges.

Taoiseach Bertie Ahern yesterday said he would work closely with unions and employers to implement anti-inflation measures outlined in the agreement to help drive down the cost of living.

“We do not want inflation at the level it is today. We want to control it and drive it down as best we can. There are no orders in place to control prices but if we can generate more activity and competition in the economy, that will be of assistance,” he said.

Yesterday’s ICTU vote was narrower than some expected with 195 delegates in favour and 147 against, although this figure was distorted by some unions in support of the deal which did not vote on the day.

There were a number of passionate speeches against the agreement from union leaders representing around 150,000 members.

Owen Willis, the general secretary of the 37-000 strong craft union, the TEEU, said it would result in a net decrease in workers’ salaries and called for a return to free collective bargaining.

“The focus of the agreement is on the control and further emasculation of free and independent Trade Unions and their members ... The alternative is very simple: free independent unions could do a whole lot better in free collective bargaining,” he said.

The general secretary of the Irish Bank Officials’ Association, Larry Broderick, said the deal disproportionately benefited employers and that unions had not been treated as equals during the negotiations.

But Mr Begg said that while endorsement of the agreement was not an endorsement of government policy, the deal would yield social benefits and protect workers’ living standards.

Employers’ body IBEC endorsed the deal but warned that employees must keep to the “spirit and letter” of the deal if it was to be effective.