SIPTU serves pay claims

THE country’s largest trade union, SIPTU yesterday revealed it had served claims on up to 15 national companies, and dozens more on employers at local level, seeking cost of living pay increases, or above, where it feels that companies can afford to pay extra.

Among the companies being targeted by the union are Aer Lingus, Bord na gCon, Tesco, Diageo, plus a variety of national catering companies and chain stores.

The union started making the demands after the collapse of the national pay talks at the start of the month.

It was expected the pay claims would on average be approximately 5% per annum.

However, SIPTU did not divulge any specific figures.

The union’s national industrial secretary Gerry McCormack said up to half of SIPTU members’ agreements, under the former Towards 2016 social partnership deal, were now running out.

In each case, the union has sent a letter to the company, seeking a prompt meeting to discuss how pay increases will be handled.

“Our union is making realistic and responsible claims on employers,” Mr McCormack said.

“In contrast, the latest survey by Hewitt Associates on international pay trends for top executives suggests that the people lecturing us about pay moderation and pay pauses are failing to demonstrate a similar sense of responsibility themselves.

“The Hewitt survey shows Irish executives have awarded themselves increases averaging 12% over the past year, compared with 4% in the US and between 3.5% and 7.5% across Europe.

“The rise in the value of the remuneration packet for Irish executives rises to 30%, when bonuses are thrown in,” Mr McCormack said.

The pay talks in Government buildings collapsed because employers wanted employees to accept pay pauses of between six and 12 months, followed by two increases of 2.5% over 21 months.

“They may claim that many of the increases they awarded themselves were made before it was clear how serious the current international downturn would be, but Hewitt anticipates that Irish executives will be rewarding themselves at least another 5%-6% this year,” said Mr McCormack.

IBEC has told its member companies to acknowledge pay claims made by unions in the days and weeks ahead, but not to act on them until new talks are held.