Doubts emerge about viability of new public sector pay deal

Michael McGrath: 'The aim should be to agree a new public service pay deal if it is possible to do so.' Picture: Gareth Chaney/Collins

Fresh doubt is emerging within Cabinet about the viability of a new public sector pay deal due to be negotiated in the coming weeks.

Public Expenditure Minister Michael McGrath has told the Irish Examiner he would prefer a deal to be negotiated, but others in Cabinet worry about the “dangerous signal” such a deal would send at a time of major job losses and recession on foot of the Covid-19 pandemic.