Pay war looms as unions dig in

THE prospect of an all-out pay war was looming last night as unions began filing pay claims up to three times greater than employers insist they are willing to pay.

Unions at Aer Lingus are to lodge a claim for a 9.5% pay increase, while the largest union SIPTU has instructed branches representing 55,000 members to seek increases of between 6% and 10%.

But employers last night said many firms could not afford these claims and warned that many cash-strapped companies need to implement a pay freeze.

The collapse of social partnership raises fears the country will face a wave of bitter industrial disputes as unions and individual employers clash over wage claims.

Despite the developments, there is still a chance a reality-check caused by the consequences of a pay free-for-all will bring both sides back to the negotiating table.

Senior Government officials have been in contact with employers' group IBEC and the Irish Congress of Trade Unions to see if there is a basis for fresh talks.

Unions and employers both say a number of difficult issues need to be resolved within days if the process is to be saved. ICTU private sector committee chairman Jack O'Connor said they would not stand for any deterioration in pay for workers.

In a statement last night, IBEC said a significant pay freeze will be needed for some firms to protect competitiveness and employment.

It has withheld directing guidelines to its branches on how to impose a wage freeze and resist demands for pay rises until there is an irretrievable breakdown in talks.

The effective deadline for a resumption of talks is next Wednesday, when ICTU's executive meets.

Unions, meanwhile, are lining up a range of pay claims well above the projected inflation rate of 4.8% for next year.

The Technical, Engineering and Electrical Union, which represents 35,000 workers, last night drew up a "pay offensive" across a number of industries which include 12-month claims above inflation and a share of company profits.

TEEU regional secretary Pat Guilfoyle said: "We mean business we have a tradition of opposing national wage agreements and this give us a chance to deliver for our members."

As well as the 9.5% increase, unions in Aer Lingus are to demand the full restoration of overtime premiums and holiday leave, according to Industrial Relations News. Amicus, which represents almost 50,000 workers in areas such as the science and finance sector, has lodged claims of up to 8.5% which it says reflects their increased productivity.

The Irish Bank Officials' Association has sought pay rises of up to 10% for its members in the banking and financial services sector.