Donohoe: Public sector pay deal possible by end of the year

Paschal Donohoe invited unions representing civil servants to sit down in the coming days to thrash out a new deal. 

A public sector pay deal is possible before the end of the year, but will be "particularly demanding", Public Expenditure Minister Paschal Donohoe has said.

Mr Donohoe invited unions representing civil servants to sit down in the coming days to thrash out a new deal. 

The current agreement, Building Momentum, is due to expire at the end of the year.

Mr Donohoe said he anticipates that this round of talks will be amongst the toughest he has taken part in.

“I’ve been involved now in a number of public sector wage agreements,” he said. 

“My anticipation is that this will be a particularly demanding agreement to get.”

However, he cautioned that while he believes that a deal can be worked out, any agreement needs to be "appropriate to the context the country is currently facing and must be sustainable in the face of considerable global uncertainty — both economic and geopolitical".

The deal agreed last August saw a 3% pay increase backdated to February of 2022, a further 2% at the beginning of March 2023, and either a 1.5% or €750 — whichever is greater — increase coming on stream last month. 

The deal cost a total of €1.2bn a year.

Siptu deputy general secretary John King said the union will meet to give consideration to the invite in the coming days.

"We have received the minister's invitation, and the Public Services Committee officers will meet within the next day to give consideration to his request.

"The officers will have to be satisfied that the invitation to talks provides a basis upon which an agreement could possibly be reached."

Europe

Mr Donohoe also categorically ruled out running for Fine Gael as a candidate for Europe next year. 

The chairman of the Eurogroup of finance ministers said he is more interested in finishing his term as a minister and will run in the next general election.

“It's not out of any disrespect for the parliament of the European Union. 

"It's an even more important element of the European Union and who goes to the European Parliament really, really matters.

“They play a huge role now in relation to decisions that really matter to Ireland. 

"We want to send our best people there. 

"But I am going to keep at this work here in Ireland and as minister for the rest of this Government and I will not be a candidate.”

Mr Donohoe was asked about a report in the Irish Examiner that former TDs Kate O'Connell and Noel Rock would combine to make the party's ticket in the Dublin constituency, but said he would wait to see who was running for a nomination before taking a decision on who to support.

“There's a lot of speculation under way regarding who the candidates will be.

“I think I’ll wait to see all the declared potential candidates before I decide who I think the best options could be or who I would support.”