Irish Water staff set to request pay rise despite utility’s €850m debt

Irish Water workers will seek wage rises of 2.5%-3.5% when a pay freeze ends in December, despite the utility facing serious financial problems after less than half of householders paid their first bills.

Siptu trade union official Adrian Kane confirmed the group will “consider the nature of the claim” in the coming months after weekend reports the salary increase will be sought.

Speaking as fresh concerns emerged over Irish Water’s €850m total debt and potential inability to pass imminent EU financial stability checks, Mr Kane said a seven-year pay freeze linked to a previous deal with parent company Ervia runs out at the end of the year.

While no pay claim has been submitted, he said similar energy sector increases given to ESB and Coillte workers range between 2% and 3.5%, and Irish Water employees will “consider” lodging such a request.

If provided, the increase —which an Irish Water spokesperson said it had yet to be contacted about — will see the utility’s wage bill jump to €2.2m in 2016, with a separate row over €4m in unpaid employee bonuses adding to the financial headache.

The news of the potential pay rise comes after Irish Water finally released figures showing just 43% of people paid their first quarterly bill.

The percentage was calculated at the start of this month but not made available until 48 hours before the Dáil broke for its 10-week summer recess last Thursday, despite repeated calls for the information to be revealed by Anti Austerity Alliance TD Paul Murphy.

Speaking on RTÉ programme The Week in Politics yesterday, junior minister Kathleen Lynch said the payment rates are likely to be a “slow burner” and she does not believe more than one million people registered only to decline to pay their bills.

She added while Government was aware the utility must pass strict EU Eurostat financial sustainability tests this autumn to remain off the exchequer books, “we need just over 50% compliance” in water charge payments for that to happen.

On the same programme, Sinn Féin’s Peadar Toibin said Irish Water had become a “fiasco factory” and “what’s going to sink Irish Water at the end of the day is Irish Water”.

Separately, it emerged that the utility has an €850m debt. While Environment Minister Alan Kelly gave Irish Water permission to borrow €550m from commercial banks, he said the interest rate was “commercially sensitive”.