Lenihan: Strikes will result in further pay cuts

PUBLIC sector workers were last night warned they would pay for all-out strike action with even deeper wage cuts as the Government and unions squared up for an “explosive” battle.

Finance Minister Brian Lenihan issued the blunt message as he put employees at semi-state companies like ESB on notice they could be targeted for wage reductions next as he opened up a second industrial “war” front.

IMPACT general secretary Peter McLoone branded the comments “provocative” as he insisted “sustained” action – which could include all out strikes – was imminent as the situation was now “explosive”.

Mr Lenihan hit back by telling workers they would pay for walk-outs in reduced wages.

“What will inevitably happen in time, if the finances continue to deteriorate as a result of strike action, is further reductions. I don’t want that,” he told RTÉ’s The Week In Politics.

The minister also indicated he was poised to claw-back pay levels in the semi-state sector.

“We have to look at all of this. I mean some of the semi-states like RTÉ have taken pay reductions.” he said. When asked about the situation at ESB, the minister replied: “That is something we can look at. I understand it won’t have a huge impact on the price of electricity. We’ve already opened a very substantial war on one front in the area and really we want to move away from having war to having constructive discussions.”

Mr McLoone said public sector workers would not back down in their bid to get pay cuts reversed and ICTU would unveil its battle plans in the next few days.

He said the measures would involve all forms of action, and would not rule out open-ended strikes as he warned talk of reform was now dead.

Mr McLoone signalled industrial action was imminent as fury raged over the budget cuts which saw those earning less than €30,000 hit pay a 5% reduction. Workers on higher salaries will take reductions between 5% and 15%.

“I’m not ruling out the possibility of all-out strikes because the reaction that we are getting is very, very strong,” he said.

Along with pension levies earlier this year, the drop means 55,000 workers who took home less than €30,000 a year have taken a €3,500 pay cut, he said.

“The ambitions for the reform that I was talking about for the last six months now lie in tatters. There’s no basis in which we will be able to go back into discussions in the short term. Effectively trust has broken down,” he said.

Mr Lenihan dismissed suggestions from coalition partners the Greens that the 5% pay cut could be eased for the low paid.

Green chairman Senator Dan Boyle said the matter needed to be looked at.

“You could possibly have a tax credit of some type,” he said.