Negotiations reopen - Stakes are too high for talks to fail

AT last sanity prevails, or is about to get its chance. Tremendous political perception was not required to identify the point in the cycle that talks between unions and Government might reopen, but that does not diminish the relief the announcement brought.

Though Taoiseach Brian Cowen’s intervention was not animated by the breathless, minutes-to-midnight predictability of a Bertie Ahern cameo, it is a very, very welcome chink of light in a terribly dismal panorama.

It is also a great relief that chaos might be averted and that the first of many steps essential to economic recovery might be taken if the talks can end in agreement.

We simply could not cope with the damage to the economy, our reputation — especially among our EU partners — and the terrible social divisions such a conflict would cause among the country’s workers.

Irish Congress of Trade Unions’ (ICTU) general secretary David Begg was right yesterday when he said that failure to reach a deal would be “catastrophic”.

However, resumption is a very long way from resolution and renewed talks are just a process, not a solution. This was recognised by the very vague terms and vocabulary surrounding the arrangements that have allowed all sides to come back together.

Our finances are just as frightening, if not even more so, as they were when the last round of talks collapsed before Christmas. As Finance Minister Brian Lenihan has consistently insisted, they do not allow for a U-turn on wage cuts or pension levies. That prospect must be deferred for some time at least. Therefore, any hope that these talks might immediately lead to a restoration to the rates of a year ago is misplaced and could undermine the prospects of agreement on many other fronts.

Mr Begg acknowledged this: “If this pay can be realigned with its original position over a period of time and in circumstances where savings can be achieved... then that surely... is a logical thing to do.”

That is a reasonable point, but savings will have to be real and not just theoretical before there can be any expectation of an upward review. Sadly, history has taught us that promised reforms are soon forgotten once corresponding payments are made. That cannot happen again.

Pay is not the only issue unions want to discuss. Pensions and job security, as well as a timeframe for recovering money lost in December, also feature. It may be difficult to square reform and job security and any process aimed at restoring pay levels must be based on something far more concrete than the passage of time.

Mr Cowen and Mr Lenihan have, so far, handled this process adroitly. The cooling-off period since December has allowed the reality of our situation to influence opinions in a way that has not always happened.

These talks are probably the most important industrial relations negotiations any of the participants will ever be involved in. The outcome will have a huge influence on this country’s immediate future, social harmony, the shape of our public services and the relationship between private and public sector workers. There are far, far more than sectional interests at stake. Let us hope all participants accept that and act accordingly.