SIPTU in no mood for Partnership pay freeze

HOPES for a new pay deal were dealt a major blow last night when unions accused the Government of blatantly siding with employers.

Employers are calling for a pay freeze for all workers for up to a year, but SIPTU, the country’s largest union, yesterday said members are not willing to make up for the Government's economic difficulties by taking a hit on wages.

Jack O’Connor, vice-president of SIPTU, said the Government and employers were on course to “sabotage” any hope of a new partnership agreement.

“The idea that workers should accept a cut in living standards, sacrificing the gains of the last few years in order to subsidise profiteering by certain elements among the business classes is simply not on, and will not happen,” he said.

Taoiseach Bertie Ahern, speaking in Cork last night, repeated his call for pay restraint and warned it is crucial to “hold our nerve” to ensure we were in a strong position to build for the future.

He said tough decisions have to be made and the Government has no choice except to hold the line and continue to tightly control public spending.

The tough talking follows the opening of negotiations to pave the way for a successor to the national pay deal, the Partnership for Prosperity and Fairness.

Employers’ group IBEC is calling for a pay freeze for the country’s 1.7 million employees, while the Government says 250,000 public sector workers face the option of postponing the start of any new pay round.

With inflation expected to run at 4% next year, a pay freeze would be equivalent to a real cut in wages.

Both Government and employers have emphasised the need to “restore competitiveness” as inflation here runs at twice the European average.

But SIPTU’s Mr O’Connor yesterday said instead of blaming workers for inflation the Government should have the courage to confront powerful business interests amassing vast profits at the expense of the community.

“It may well be that prospects for another national agreement will stand or fall on the Government’s action or its failure to act on this critical issue,” Mr O’Connor said.

“Responsibility rests fairly and squarely with the Government and they cannot be allowed to get away with sabotaging the prospects for an Agreement which is ultimately in the interests of all our people.”

Unions are looking for increases in the forthcoming pay talks to ensure that incomes keep ahead of inflation.

They are also seeking progress on non-pay issues such as affordable housing, childcare and access to a first-class health service.

They claim that instead of being among the best-paid workers in the EU, figures for gross pay put Irish workers as low as 14th on the European league table.

The Taoiseach, who says it’s vital to secure a new pay deal, last night insisted a prudent approach to public spending would ultimately be in everyone’s interest.

“All of the economic projects indicate that if we can hold the line, deliver responsible Government and control public spending, this will give us the capacity to keep on a stable and upward economic path,” he said.