National pay deal - A triumph of common sense

The outline agreement reached on the national pay talks is to be warmly welcomed, especially in the midst of the current upheaval in the international markets. The agreement should help generate a vital period of necessary economic stability.

It provides for a pay hike of 6% for all workers over a 21-month period as a replacement for the expiring agreement — Towards 2016. It is a short-term agreement, but that should cover the uncertain period ahead.

There will be a three-month pay pause for all private sector employees, followed by a 3.5% raise in the following six months, and a 2.5% increase over the following year. The agreement also envisages an extra 0.5% rise for lower-paid workers at the end of the period. It should be stressed, of course, that the minimum wage in Ireland is already the second highest in the EU.