Strike action possible over pension levy

Angry union leaders tonight refused to rule out strike action to oppose the Government’s pension levy designed to save €1.4bn.

The Irish Congress of Trade Unions (ICTU) said the Cabinet’s proposal was an unfair pay cut on 340,000 workers in the public service.

The Taoiseach said he aims to rush legislation through the Dáil early next month to give effect to the levy, which has also been attacked by groups representing gardaí, nurses and teachers.

ICTU general secretary David Begg said the views of his angry members will be fully consulted on the proposal in coming days and a full meeting of ICTU's Executive Council body will be convened to develop a response strategy.

Mr Begg said: “We will not take any self-defeating actions, but we cannot walk away and see a major reduction in peoples’ standards of living.”

He added: “We would have to consider a campaign against the Government’s imposition of this pension levy.”

He said that the burden of the charge was unfairly spread across public service workers and particularly targeting low to middle income earners.

He claimed there had been a six month frenzy of demonising public service workers.

The cutback proposals were the focus of a two-day Dáil debate which began today.

The salary-related levy will be calculated on gross pay and will mean a 3% contribution for workers on 15,000 up to 9.6% for staff earning €300,000 before tax.

The Irish Nursing Organisation, which had threatened legal action if pay cuts were implemented, is due to meet to discuss the issue early next week.

The INTO teachers’ union warned of a “strong response” if the measures were not modified.

“The wealthy and privileged have not been asked to put their hands in their pocket to the same extent,” said general secretary John Carr.

Public service union Impact earlier claimed that the levy will hit thousands of lower paid workers harder than their higher-earning colleagues.

Spokesperson Bernard Harbor said: “We have received hundreds of phone calls and emails from workers on ordinary incomes who are furious at the Government and uncertain how they will continue to pay their mortgages and other bills.”

Impact is holding a meeting of union branches in Dublin tomorrow.

ICTU vice-president Jack O’Connor said: “We’re not calling this a pension levy. This is a pay cut and has more to do with driving down wages in our economy.”

ICTU vice-president Peter McLoone said the imposition of the levy was a major setback to the social partnership process.

Mr Begg said the proposals were only presented two hours before the overnight talks collapsed at 4am on Tuesday morning.

He rejected claims that union officials withdrew from the negotiations as a tactic.