Hopes raised for breakthrough on public sector pay

Hopes for agreement on the Croke Park II package of public sector pay cuts were revived yesterday as last-minute talks continued with unions.

It is understood agreement has been reached in principle with garda groups.

Talks chairman Kieran Mulvey of the Labour Relations Commission is to brief Public Expenditure Minister Brendan Howlin today on the outcome of weekend meetings amid speculation that sufficient progress has been made to warrant an extension for more talks.

However, it is not certain that the minister will be swayed to lift the deadline without strong evidence that agreement on the €300m cuts package can be reached without undue delay.

Mr Howlin was prepared to declare the negotiation process dead and buried if agreement was not concluded today and to go to Cabinet tomorrow with draft legislation enabling him impose cuts without union acceptance.

Even if he is persuaded to pull back from the deadline, it may only be to facilitate preparation of a two-pronged approach involving moderate concessions for unions that agree to the deal along with legislation for more stringent cuts for unions that refuse.

Tánaiste Eamon Gilmore gave indications that such a sectoral approach was being considered, although he re stressed the Government’s preference was to resolve the impasse by agreement with all the unions.

“They’re all options which I’m sure that Kieran Mulvey has been exploring with the individual unions and we’ll hear on Tuesday what the outcome of those discussions are, but our preference remains for a negotiated resolution to the issues,” he said.

He was not opposed to the deadline being lifted to allow further talks, but indicated the process could not drag on indefinitely.

“Time is not something that’s on our side on this because we do have to achieve the savings. There’s €300m [in savings] to be achieved this year and there’s been quite an amount of time spent on this.”

Jack O’Connor, president of Siptu, which voted against Croke Park II, said there was potential for agreement, though he cautioned against presumption.

“From what I am hearing from the talks process there is some possibility of something happening. I wouldn’t overstate it,” he said.

He did not rule out unions making individual deals to avoid enforced cuts, but said it should be possible with more time to get majority agreement on an amended Croke Park II. “I don’t think the Government should be rushing to legislate on Tuesday.”

A split deal approach would be divisive within the union movement, but the prospect of legislated cuts has already prompted several unions to declare readiness to strike, so anything other than a negotiated settlement spells trouble.

Employers’ group Ibec said the Government could avoid some trouble if it published whatever draft legislation it had so that unions would know exactly what is at stake before walking away.

Unite, which also voted against Croke Park II, showed no signs of being willing to bend, however. It is calling today for the Government not only to abandon the €300m in cuts but to invest that amount.