Joan Burton backs public pay rise

Tánaiste Joan Burton has backed plans to give public sector workers pay rises of up to 3% in the coming months, despite declining to say how much money is available to fund it.

Under moves leaked before the Coalition’s “spring statement” budget announcement tomorrow, Public Expenditure and Reform Minister Brendan Howlin and Finance Minister Michael Noonan are considering offering the wage rises in meetings with union leaders next month.

If agreed, the pay rises are likely to be signed off by the Dáil before it breaks for its summer recess in July, resulting in benefits to a 290,000-strong public workforce which has seen wages fall by an average of 14% in the recession.

Responding to questions about the potential pay rises at Labour’s ‘Yes’ vote on marriage equality campaign launch, Ms Burton said that she was in favour of the increases, as people in the sector have given up €2.2bn “for the country and the maintenance of public services” since 2008.

However, she declined to explain if the money would be provided for in the October budget, meaning it would land in people’s pockets in January, or if it would be included in a supplementary budget, meaning the funds would be available this year. She did not say how much the initiative would cost the exchequer.

“People employed in the public service have faced pension levies, very significant pay cuts and like people in the private sector have seen their share of the universal social charge and tax increases,” she said.

“As no talks [with unions] have taken place yet, I’m reluctant to say the amount of money involved, but the amount of productivity and savings the public sector has given [during the recession] amounts to €2.2bn.

“It’s right and appropriate that Brendan Howlin as he indicated will go back into discussions with unions sometime around the middle of May.”

However, Ms Burton added it would be “wrong to create false and excessive expectations”.

The comments come as the Coalition prepares to launch its spring statement tomorrow. The document is expected to include a package of tax cuts and spending measures worth up to €1.5bn all of which will be implemented before the next general election.

At its weekend ard fheis Fianna Fáil — which announced housing, childcare, and small business plans that would cost €1bn to implement — claimed the spring statement was a bid to buy the next election.

DISCOVER MORE CONTENT LIKE THIS