Government urges unions to return to the table on public pay talks

(Left to right) Taoiseach Micheál Martin and Minister for Public Expenditure and Reform, Michael McGrath, at the National Economic Dialogue in Dublin Castle today. Mr McGrath said that negotiation was the only way to find an agreement in the public sector pay talks. Photo: Sasko Lazarov/RollingNews.ie

The Government has urged unions to return to the negotiating table on a new public sector pay deal.

Talks between the Government and trade unions on a new public sector pay deal ended on Friday without agreement. 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.

Government sources said that the 2.5% 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. Unions have since indicated that they will not return to negotiations unless there is an increase in the Government's offer.

Speaking at the opening of the National Economic Dialogue at Dublin Castle, Public Expenditure Minister Michael McGrath said that negotiation was the only way to find an agreement.

"I do hope we can get back into discussions," Mr McGrath said. 

I think it is in the interests of everyone that we have a collective agreement.

"It helps to provide industrial peace and also gives us certainty over a very large area of expenditure.

"I think the offer that was made by the Government was a good offer, it went a long way towards matching the projected level of inflation but we have to ensure that any deal is affordable and sustainable.

"I do hope we can get back into discussions and the Government's door is very much open but there has to be a realistic basis for reaching agreement."

Asked if it was prudent to offer an additional €1.2bn to public sector workers at a time when the Government is under pressure to address spiralling inflation, Taoiseach Micheál Martin said that there "are pay discussions going on across both the private sector and the public sector".