Social partnership talks hit pay snag

SOCIAL partnership talks on a new economic recovery plan appeared to be floundering late last night after unions rejected demands by IBEC for a pay pause to the end of 2011 and a more employer-friendly inability to pay clause.

Earlier in the day, employers’ body IBEC told a conference in Dublin that September’s transitional social partnership agreement between employers, Government and unions no longer reflected the economic realities.

It said that while in September only 15% of private sector employers would have claimed inability to pay the 6% pay increases over 21 months, as required under the deal, the reality now was that 85% would be in that position. Therefore it said the inability to pay clause needed to be renegotiated.