Benchmarking report - Keeping Ireland competitive

The second report of the Public Service Benchmarking Body is due out later this week. Even the unions concerned have prudently been talking down expectations in view of the current economic slowdown.

Any pay increases for public servants are expected to be minimal. Some of the lowest predictions have ranged from no change to a 1.5% increase. Of course, it should be kept in mind that workers are already due to get more than 5% in two increases in 2008 under the terms of the social partnership agreement Towards 2016: 2.5% from March 1, and a further 2.5% from September 1.

There is unlikely to be a repeat of the bonanza enjoyed by public servants following the first benchmarking process five years ago. The average pay increase then ran at 9%, which Senator Joe O’Toole, a former union official, described as an “ATM” for public service workers.

As the economy has changed considerably since then, the forthcoming report will have to keep in mind the country’s competitiveness in the international arena if we are to enjoy continued economic prosperity.

Benchmarking was introduced to ensure public service workers kept pace with the private sector, but aspects of the private sector were grossly overestimated, and the end result led to a distinct imbalance in favour of public sector workers. If sizeable increases are recommended this week the whole process will have to be questioned seriously.