Labour is ‘way off’ supporting forced pay cuts

Labour members have warned against having to make up savings from the collapsed Croke Park deal by taking from services or from the vulnerable, and suggested further talks with trade unions.

Parliamentary members held a crunch meeting behind closed doors yesterday after the rejection of the Croke Park II deal with public sector workers.

Public Expenditure Minister Brendan Howlin addressed frustrated members, some of whom say the party is “way off” backing any legislation to force through pay cuts.

The rejection of the pay deal was the centrepiece of the two-hour meeting, which never even addressed Labour’s recent bruising result in the Meath East byelection or the exit of MEP Nessa Childers from its parliamentary party.

Several parliamentary members told the Irish Examiner the Government could not go back and ask for cuts to services or the vulnerable to make up the savings needed.

Mr Howlin needs to save €300m from payroll this year and €1bn by 2015, as agreed with the troika.

Instead, members sugg-ested yesterday talks be held with trade union leaders to investigate options, and time was needed to find the best way forward.

“We’re a long way off supporting any legislation for a 7% [forced] pay cut,” one TD warned after the meeting. “We cannot go back and hit the vulnerable or disabled.”

Another said the meeting had expected to be volatile but that members are on the same page on the fallout from the collapsed pay deal.

“It’s difficult and we have to find the best way forward,” said another TD.

All senior ministers were in attendance except for Ruairi Quinn, the education minister, who was attending Margaret Thatcher’s funeral in London.

Dublin Mid West TD Robert Dowds said there had been a lot of support for Mr Howlin at the meeting.

“It focused attention on whatever adjustment is made, it must be made on people who can afford it. The feeling is that this gap has to be bridged but we have to have a pause to think about it. There’s no doubt about it, we’re in a difficult place. We’re trying to sort the country out and, hopefully, we will get some spin-off from that.”

Labour leader and Tánaiste Eamon Gilmore is expected to meet with parliamentary party members over the coming days.

Speaking in Dublin yesterday, he said it was too early to speculate on specific options to make the savings needed.

However, he rejected suggestions the Coalition was damaged.

“Not at all. Pay agreements have been put on the table and rejected before, there’s nothing particularly exceptional about that.”

Labour Party chairman Colm Keaveney said talks with unions needed to identify why the deal had failed.

One of the reasons was the deal had been “all stick and no carrot”.