Govt calls for renewal of national pay talks

The Government today called on employers and unions to reflect on the suspended national wage talks and meet face-to-face again at the end of the month.

The social partnership negotiations broke down earlier today after workers’ representatives refused to accept a timetable of pay increases stretching over the next 18 months.

With the August 1 deadline for agreement passed, Government minister Martin Cullen urged both sides to reflect on the outstanding issues in the coming weeks, but some unions vowed to press ahead with wage rises in their sectors.

Taoiseach Brian Cowen and Tánaiste Mary Coughlan had been on standby up to 4am at Government Buildings to help broker a deal if necessary.

It is understood employers offered the unions a 18-month timetable consisting of a six-month pay pause, followed by two separate pay rises totalling 5%.

Expressing regret at the suspension of talks, Sports Minister Martin Cullen said industrial relations machinery remains in place to prevent work stoppages.

He urged employers and unions to reflect on the issues involved before returning to the talks table at the end of August.

“After that period of reflection, it may be possible to renew discussions,” he said.

The country’s biggest union, Siptu, said afterwards that it would continue to lobby for pay and better working conditions for its members.

Siptu general president Jack O’Connor said: “Siptu will be pressing ahead with claims to protect workers’ living standards across all the sectors of economy in which the union organises.”

“We will also continue to campaign for measures to protect employment standards and prevent the ratcheting down of pay and the quality of their employment .

Retail sector union, Mandate blamed the collapse of the talks on employers refusing to recognise the inflationary pressures on Irish workers.

General secretary John Douglas said Mandate will now lodge individual pay claims with employers in the retail sector.

“We will be seeking a substantial flat rate pay increase for our members with immediate effect along with other non pay issues,” he added.

The Labour Party warned against jeopardising the economic progress made in recent years under successive partnership agreements.

TD Willie Penrose said: “I hope that the culture of industrial peace that has developed in Ireland, and which has benefited workers and employers, does not come under threat.”

Employers’ group, Ibec said any deal struck by the social partners must not increase inflation which is already hitting jobs and living standards.

Ibec director general Turlough O’Sullivan said: “Pay must not chase inflation. Government, trade unions and business must put in place arrangements that will help us to regain competitiveness and protect the maximum number of jobs.”

Ibec said it will be advising its member organisations not to engage in local bargaining until all avenues at reaching a new agreement have been exhausted.

Chambers Ireland said common sense in any agreement was necessary to restore competitiveness.

“The collapse of these talks, combined with the collapse of the World Trade Organisation talks earlier this week means we must do everything in our power to ensure that our exports remain competitive in international markets and we remain attractive to companies already operating here and those considering investing here,” said chief executive Ian Talbot.