Trade unions: Think-tank a ‘cheerleader’ for Government

TRADE unions have accused the Economic and Social Research Institute (ESRI) of being the “cheerleader for the Government policy” fixated with cutting public service pay.

With a Government invite to talks on a new recovery plan imminent, SIPTU, IMPACT and the Irish Congress of Trade Unions all issued statements dismissing the ESRI’s calls for a cut in public sector pay.

“The rhetorical calls for further cuts in the pay of people who work in the public service flies in the face of the latest figures emerging from the Central Statistics Office, which provoked even (the ESRI’s) own John Fitzgerald to declare that he would not call for any further pay cuts on these workers.”

IMPACT trade union said it was very clear the ESRI continued to be fixated on cutting public sector pay, despite the imposition of a 7.5% pay cut on all workers in public services earlier this year.

“In recent weeks the institute has published a number of reports, claiming a premium of up to 26% in public sector pay,” it said. “The range of figures produced by the ESRI is drawn from old data, which predates the current pay freeze in the public sector, and the imposition of the so-called pension levy. Despite its failure to present reliable figures on public sector pay, the ESRI has continued to call for an unspecified cut in all public sector pay.”

ICTU economic advisor Paul Sweeney said pay cuts in the public service would be deflationary and would “simply make matters worse”.

Mr Sweeney also criticised the ERSI’s insistence on continuing the process of fiscal adjustment over a short timeframe, ensuring that the cuts are far harsher.

“The budget will be harsh enough,” he said. “But by extending the timeframe of the recovery period beyond 2013, the destruction of viable firms and jobs can be mitigated.

“The Government must not impose the brutal budget adjustment advocated by certain economists. In the crisis, we must work constructively together to protect jobs, the low paid, middle income and vulnerable workers and citizens. That the ESRI singles out only wage-earners for cuts is telling.”