Agreement a boost for economy

Workers, employers and the Government are mulling over the financial and political implications of the proposed new national pay deal.

But the real significance of the accord, forged in tough negotiations over the weekend, was in copper-fastening the social partnership process just when it seemed in danger of collapse. There is now growing confidence that the green light will be given by unions and employers for a new accord embracing a pay increase of 7% over 18 months, plus initiatives on housing, the minimum wage and statutory redundancy.

Though the partnership doctrine is no longer popular among employers, it would have been a serious tactical error to scuttle a system which had become such a vital cornerstone of Ireland’s economic stability success in recent times.