Social partnership talks set to be restarted

THE Government will attempt to avert the threat of escalating industrial unrest by inviting the social partners back for talks on a national response to the economic crisis.

Jack O’Connor, president of the country’s largest trade union SIPTU, said if his union received an invitation to talks, it would attend.

“However, if the mindset of the Government is still as it was, I find it difficult to see how we can conclude an agreement,” he said.

The Government signalled it would attempt to revive the talks, which broke down last June, in response to a report published yesterday by the National Economic and Social Council (NESC) on a response to the financial crisis.

“The Government proposes to invite the social partners to meet to discuss whether there is sufficient basis for entering substantive negotiations to secure an agreed national response to the current economic crisis,” a statement said last night.

SIPTU said it will continue with its plan for industrial action over the Government and employers’ failure to honour the terms of the last national wage deal which promised up to a total of 6.5% pay increases.

That deal was parked by the Government several months ago, but Mr O’Connor has pointed out no alternative deal has been agreed: “We will be continuing our own preparations for our campaign,” he said.

The union is to lodge a pay claim for a 3.5% portion of the total agreed last September on behalf of more than 20,000 members in local authorities around the country.

It has already said it will seek the same amount for more than 34,000 staff in the health sector.

SIPTU will also play a large part in the Irish Congress of Trade Unions’ led national day of protest on November 6 which has been arranged in protest at the Government’s handling of the economic crisis.

Meanwhile, the Department of Finance is still insisting new taxes will not be introduced in December’s budget. This is despite an agreement between Fianna Fáil and the Green Party for the introduction of water charges, a site valuation tax and the abolition of the PRSI ceiling in the new Programme for Government.

“It should be pointed out that water charges are not a tax as they are charges paid directly for the provision of a service,” said a Department of Finance spokesperson.

“The removal of the PRSI ceiling is not a new tax. It is a change to an existing tax to redistribute the burden of taxation,” he added.

The introduction of water charges is a source of disagreement with Finance Minister, Brian Lenihan, opposed to the Green Party’s demands for a metered, pay per use system.

The Department of Finance is believed to favour a flat rate, reported to be around €175 per household per year.

Green Party chairman Senator Dan Boyle said: “There is still a difference of opinion on when and how it will be introduced. There are still discussions to be made.”

Justice Minister, Dermot Ahern, said the abolition of the PRSI ceiling for employees is “a budgetary issue” and “may not happen this year”.