Public service pay ‘restoration’ talks underway

Talks on how much of the Government’s €750m public expenditure pledge will be given over to pay restoration for its staff will begin this afternoon, with the pension levy likely to feature high on the agenda over the coming days.

Today’s engagement is expected to see the two sides lay out their initial positions, with the Government then expected to give unions a more detailed outline of the financial parameters on Thursday afternoon before talks begin in earnest next Tuesday.

Sources indicate that a winding-back of the pension levy, which averages out at about 7%, is likely to be only one part of any proposed agreement which may emerge within the next few weeks. That is because the way the levy was applied — with different percentages applying to different wage earners — means an “equitable” solution may not be possible if the entire restoration is based around it.