Public service pay talks reach crucial point this week

Unions have said that while they will be flexible in the talks, a significant improvement in the Government’s pay proposal is needed to prevent industrial action ballots from going ahead next month. File picture

Talks on a public service pay deal which would avoid widespread industrial action resume this afternoon, with Government sources saying that an agreement must be reached this week.

Negotiations between unions and the Government at the Workplace Relations Commission stalled in June after the Government offered 5% over two years. 

Unions had been pushing for an increase of at least 7%, which the Government argued its offer had amounted to because it would come on top of a 2% increase already given. That proposal would cost €1.2bn a year.

Provision for an improved pay deal is included in the €5.7bn budget package due to be announced in  four weeks, which means that there will be an imperative for a swift conclusion. 

One Government source said that a deal "will either happen in the coming days or not happen before the budget".

While Public Expenditure and Reform Minister Michael McGrath would not be drawn on the timeframe or figures involved, he told the Irish Examiner: "We have signalled the willingness to make a renewed offer that will take us to the limit of what we can do.

"I very much respect union leadership and worker representatives — they are looking for the best deal for their members and they at the same time recognise that I have a balance to find because the broad parameters of the budget have been agreed. 

The talks will be challenging — but a deal can be done."

Unions have said that while they will be flexible in the talks, a significant improvement in the Government’s pay proposal is needed to prevent industrial action ballots from going ahead next month. 

They say the June offer had not reflected the reality of the cost-of-living crisis.