Government and unions agree public sector pay deal

Government and Unions have reached agreement on public sector reform and pay after another marathon session of talks last night.

The deal covers all the main sectors in the public service including Health, Education, Justice, the Civil Service and State Agencies to the period up to 2014 - and will result in a major reduction in the number of public servants.

Taoiseach Brian Cowen said the agreement will create a public sector we can be proud of and a public sector we can afford.

The deal, which was brokered just before 3am this morning, is believed to centre around widespread transformation in the public service in return for receiving back, over time, some of the money lost in the pay cuts introduced by the Government in recent months.

The Government had re-entered the talks last night saying they were half hopeful of reaching agreement.

Among the problem areas were plans to introduce a seven-day roster in the health service, which would remove premium payments for weekends, redeployment of staff within the civil and public service and outsourcing of work.

The deal overnight agrees in principle that there will be no more pay cuts before 2014, with a pay review scheduled for next year, when officials will look at whether there is scope for pay cuts to be reimbursed to workers.

In a statement, the Taoiseach said the agreement will result in greater efficiency, better services and more satisfactory working conditions for public servants.

Unions will now have to outline the terms to their members and it will be subject to a ratification process.

Minister of State Dara Callery, who has responsibility for public service reform, said we must maximise the contribution the public service can make to sustainable economic renewal.

He said this would be enabled by the commitments which have now been agreed by management and unions.