National wage deal talks to carry on

Talks to hammer out a new national wage deal are set to continue for the rest of the week after no agreement emerged tonight from Government Buildings.

Taoiseach Brian Cowen earlier indicated that a sustainable short-term solution may be possible until economic conditions improve.

Employers and unions today discussed non-pay issues such as pensions, agency workers’ rights and employment law.

However, it is believed that both sides are still deadlocked on wage increases and observers predicted that the talks could go down to the wire later in the week.

Speaking in his constituency, Taoiseach Brian Cowen today said that pressures on the economy were impacting negatively on jobs.

Figures released last week showed a record 74,000 increase in the dole queues during August – the highest in 10 years.

Mr Cowen said: “There are areas of the economy that are competing, and there are other areas which have severe difficulties.

“We need to see if it is possible to come up with a solution that is affordable in the immediate term, to find some space to bring about changes for the better, against a very challenging international environment.”

Finance Minister Brian Lenihan is currently compiling his Budget which has been fast-forwarded by almost two months to October 14 as a €5bn deficit opens up in the public finances.

Employers’ bodies like Ibec have insisted the current economic downturn offers no scope for pay rises but unions have demanded that wage packets reflect cost of living increases.

The Civil and Public Service Union and the Irish Bank Officials Association both categorically ruled out the pay pause proposed by employers.

Siptu, Impact and Mandate also insisted that low-paid workers must be protected.

Social partnership talks ended without agreement last month after failing to meet the August 1 deadline.

The sides returned to Government Buildings for separate meetings with the Taoiseach last Friday and it was decided to meet this week in a last-ditch bid to broker consensus.

The Taoiseach has told the social partners that he is ready to intervene in the negotiations if he is needed.