Unions: Pay proposals 'a signal that workers should bear brunt of rising costs' 

Taoiseach Micheál Martin urged unions to return to negotiations.

Public sector unions have claimed Government pay rise proposals would have "signalled to employers that workers should bear the brunt" of rising living costs, after talks between the parties broke down.

As Taoiseach Micheál Martin urged unions to come back to the negotiating table, Irish Congress of Trade Union's (ICTU) Public Services Committee chairperson Kevin Callinan said Government proposals fell far short of 2021 inflation and projected 2022 cost-of-living increases.

Talks on public sector pay increases at the Workplace Relations Commission (WRC) ended in the early hours of Friday morning.

The WRC has since urged both sides to reflect and consider fresh negotiations over union demands for pay rises of up to around 6.75% to compensate for the spiralling cost of living.

The Department of Public Expenditure had offered supplementary pay rises of just 2.5% for the period 2021-2022, despite expected annual inflation of at least 9% over the two-year period, the union negotiators claimed.

Kevin Callinan said if the WRC saw value in another engagement, the union side would be available. Picture: Domnick Walsh

However, speaking in Kerry on Friday following the collapse of the talks, the Taoiseach insisted that Government negotiators had shown willingness in the talks.

"I would hope that in the coming while the talks could resume and that we could get a resolution...the talks have taken place in a very constructive spirit - the pay issue is important.

The Government side has come some distance. 

"There is a gap there and we have to take broader issues into consideration in terms of the needs – we have a cost of living package in terms of expenditure (in the budget)," he said.

Mr Callinan said Government proposals fell far short of projected inflation, and could not credibly have been put to members in union ballots. 

He claimed they would send a signal to employers across the economy that workers should bear the brunt of large and sustained increases in the cost of home heating, fuel, food, housing, childcare, and other essentials.

"The Government’s proposals would leave low and middle-income public servants struggling to pay essential bills. 

"And it would send a message to employers across the economy that workers alone must pick up the tab for out-of-control price hikes," he said. 

Workers don’t cause inflation, they and their families are the victims of inflation.

Mr Callinan said that if the WRC saw value in another engagement, the union side would be available.

"We worked in good faith to avoid this breakdown, but the proposals we were presented with overnight could not credibly be put to union members, who rightly decide whether we enter or extend any agreement. 

"The Government now needs to return with a more realistic offer that can maintain stability in public service delivery and industrial relations," he said.

Government sources said that the 5% offer was in addition to the 2% pay increase already provided for this year and was “substantial” with an associated cost of approximately €1.2bn.

The payment would bring the total cost of the Building Momentum pay agreement to €2.3bn.

Government sources said that ministers have "been clear from the beginning of this process that we could not chase inflation" and it was "important to avoid measures that would exacerbate inflationary pressures".

Sources added that there were increasing levels of uncertainty in the global economic climate from rising interest rates, high levels of public debt and inflationary pressures.

They said that the Government feels the offer is "credible and prudent".