Deadlock as pay talks set to adjourn to September

THE national pay talks dragged on into the early hours of this morning with indications that they will be adjourned until September.

The social partners spent more than 10 hours for the second day in-a-row locked in what were billed as make-or-break talks at Government Buildings in an effort to secure a new national pay agreement.

They considered draft written compromise proposals on key issues of the social partnership agenda presented by the Government after months of apparently fruitless negotiations.

Unions and employers also discussed several non-wage issues.

But despite the last ditch bid to secure agreement, both sides remained deadlocked on key issues.

And there was still no sign of progress on pay.

Sources said there is a huge gulf between the employers’ position of a zero pay rise and what workers say they need — pay rises to at least keep pace with inflation at 5%.

Bilateral talks were held during the day — between the unions and the Government’s negotiating team, and between the employers and the Government team.

The Taoiseach indicated he would be available to broker a deal if the gap between the sides narrowed.

But a Government spokesman said there had been little progress since Thursday.

A union spokesman said the gulf between both sides on the pay issue was so far apart it would be pointless calling in the Taoiseach at this stage.

It is understood the unions were anxious to agree a deal last night because they said an adjournment was in effect, a month’s pay pause.

Union leaders warned that in the absence of any deal, employers will face a surge of local bargaining.

Director general of Ibec, Turlough O’Sullivan, has said “it is probably the most challenging situation we have found ourselves in since the start of the partnership process in 1987/1988”.

“As far as we are concerned, we need an agreement that helps the competitiveness of the economy because we are in severe difficulty. If we can do that, it will be worth the effort.”