Taoiseach says public sector pay package 'is not a small offer' but insists it must be sustainable

Micheál Martin told the Dáil: 'We have to think of the wider picture as a Government. We have responsibilities, and that is it'

Taoiseach Micheál Martin speaking to the media before a Cabinet meeting at Government Buildings in Dublin about a proposed public sector union strike. Picture: Cillian Sherlock/PA

The Taoiseach has insisted that the public sector pay package put forward "is not a small offer" and that a planned strike does not have to go ahead next week.

However, Micheál Martin warned that any pay increases must be sustainable. 

"We have to think of the wider picture as a Government. We have responsibilities, and that is it. We will continue to engage in the talks in good faith with the trade unions," Mr Martin told the Dáil.

"There is no need for a strike next week. With the will, there is a way to resolving this."

It comes as unions and Department of Public Expenditure officials continued to engage with the Government-appointed group throughout Tuesday to try and find a pathway back to pay talks.

Following a meeting of the Irish Congress of Trade Unions’ (ICTU) public service committee on Monday, unions are planning for another day of strike action on Thursday, November 12. 

This is the same day as a major European meeting in Dublin, with over 50 leaders jetting into Dublin for the European Political Community (EPC).

Offer understood to be 7.75%

The Irish Examiner understands that the offer on the table from the Government is for a 6.75% pay rise, backdated to July 2026. This deal would last until November 2028, and would include 1% for local bargaining, bringing the total increase to 7.75%.

Unions and officials met with the Government-appointed group, led by Workplace Relations Commission (WRC) chair Kevin Foley, throughout Tuesday, with talks ending around 5.30pm.

Engagement with the group will continue on Wednesday, with both parties asked to undertake further consideration of the matters being discussed.

"Officials will continue to make themselves available to engage intensively and constructively in this process, with a view to resolving matters without undue delay," a spokesperson for public expenditure minister Jack Chambers said.

Opposition parties highlight lack of progress

The pay deal and the impending strikes dominated Leaders’ Questions in the Dáil, with opposition parties berating the Taoiseach and the Government over the lack of progress.

Sinn Féin leader Mary Lou McDonald accused the Government of having a "lack of respect" which had forced public sector workers onto the picket line three weeks ago and which is now resulting in a "refusal to deliver a fair pay deal".

She said a €95,000 pay increase signed off on for the chief executive of the Dublin Airport Authority (DAA) "captures what is the stark unfairness at play here".

"It is an increase far above the total salary of a young teacher or nurse. It was granted with no problem, no drawn-out talks and signed with the stroke of a pen. Fianna Fáil and Fine Gael deliver for those at the top, but it is a very different story if you are a nurse, a teacher, an SNA or a firefighter," Ms McDonald told the Dáil.

Pay talks 'an unmitigated disaster'

Social Democrats TD Cian O'Callaghan dubbed the Government's handling of the talks with public service workers "an unmitigated disaster".

Responding, the Taoiseach said the coalition is committed to a template governing the pay negotiations and is adhering to that template.

"We want to arrive at a fair and sustainable pay agreement for public servants. Government is committed to its role as a good employer," Mr Martin said.

The Government is now facing the embarrassing prospect of having 300,000 public servants on strike during the EPC meeting.

• Louise Burne, Political Correspondent
• Elaine Loughlin, Political Editor