Public sector to avoid budget pay cuts

PUBLIC sector workers will not be targeted for further pay cuts in the forthcoming budget.

Finance Minister Brian Lenihan has told the Irish Congress of Trade Unions that the Government “intends to comply” with the terms of the Croke Park agreement on public sector pay and pensions.

Under the deal, ratified earlier this year, public servants are guaranteed no further pay cuts and no compulsory redundancies up to 2014 provided they co-operate with reforms of the public service that would produce savings.