Strikes loom as unions reject pay cuts

The Government may seek to introduce elements of Croke Park II to avoid crippling strike action which would result from a direct 7% pay cut across the public service.

Following comprehensive rejection by trade unions of the Labour Relations Commission’s proposals, Minister for Public Expenditure Brendan Howlin warned he is “literally going to run out of money” between now and the end of the year unless the savings of €300m envisaged under the deal are found.

Crippling strikes loom if he goes ahead with legislation in the Dáil to impose pay cuts he previously indicated would amount to 7%. Such a move could also threaten the Coalition, with Labour backbenchers warning they could not be expected to vote such cuts.