New fund can tackle jobs crisis, say union chiefs

Union leaders tonight called for a €1bn fund to tackle the jobs crisis during the recession.

Congress believes the financial package would promote a job sharing initiative, with workers paying taxes while being retrained on days off, and fund projects in the construction sector.

The umbrella group also demanded homeowners at risk of having their house repossessed be protected for three years to sort out their finances.

The measures were outlined in an updated 10-point plan which Congress claimed should be included in the upcoming budget.

David Begg, general secretary, said the alternatives put forward would not prevent pain and hardship but were better and fairer.

He stressed cutting the income of the least well off on social welfare or a low wage would trigger a fear of spending and a downward spiral in the economy.

“Congress believed that there should be, in every society, a threshold of decency below which you do not go,” said Mr Begg.

“Cutting social welfare rates falls into that category.”

In a 10-point action plan to help steer the country out of recession Congress said it wanted:

* Government to increase borrowing and extend the period to reduce the national debt.

* The jobs crisis be tackled with a €1bn fund.

* No income cuts to keep people spending.

* Vital services exempt from Budget cutbacks.

* Protection for people who face house repossessions, with an office of indebtedness as an alternative to court.

* A fair taxation system with a new higher rate for the wealthy.

* Reform to protect private-sector pensions.

* No social welfare cuts.

* Reform of bank structures to prevent another crisis.

* Government’s commitment to legislate workplace rights.

The Government has already signalled it intends to cut around €4bn from public spending next year, with €1.3bn coming from public sector pay.

The Frontline Alliance, which represents gardaí, nurses and firemen, have backed a national day of protest in eight towns and cities on Friday against pay cuts.

Chairman Des Kavanagh said it is important all working people who pay their taxes support the Congress campaign.

“The PAYE sector is already shouldering more than its fair share while the bankers, developers and others who wrecked our economy are seeking to divert attention from their own need to contribute by fomenting a divide between public and private sector workers,” said Mr Kavanagh.

“We are all paying our fair share, now it is time for those who have contributed nothing extra to do so.”

Elsewhere the Irish National Teachers’ Organisation is to ballot members for industrial action in response to threats to pay, pensions and conditions of employment.

The result of the ballot will be known on November 16.