Hopes of salvaging pay talks in the balance

HOPES that a new national pay deal could be salvaged hung in the balance last night as last-ditch talks continued between unions and employers.

Both side reported some progress in ancillary issues such as union recognition and compliance with a new agreement.

But the question of pay rises was still the biggest stumbling block, with both sides deeply divided on how to push forward.

Taoiseach Bertie Ahern has offered to intervene in the talks but is due to leave for a six-day state visit to Mexico this afternoon.

Earlier, Mr Ahern said his own officials involved in the talks did not know whether it would be possible to strike a deal.

“A number of the obstacles have been clarified, maybe not agreed, and that’s useful in any set of discussions. But nothing is agreed until everything is agreed.

“There are a number of very difficult obstacles and the assessment of my officials is that they can’t be certain whether it can be resolved,” Mr Ahern said.

Employers’ group IBEC has been insisting that some firms need to implement a pay freeze because they cannot afford any new increases.

Unions, however, say their bottom line is a pay increase that at least matches the rate of inflation.

There were suggestions from some sources that talks could continue for days, although union officials say signs of progress must be made by Wednesday, when the executive of the Irish Congress of Trade Unions’ executive council meets.

It seems certain any deal will be as short as 12 months, given the uncertainty over the economy.

Dermot McCarthy, secretary general at the Department of An Taoiseach, is chairing the talks and communicating separately to unions and employers who have yet to meet face-to-face.

If the talks fail it seems certain a new era of widespread industrial unrest will be unleashed as unions and employers clash in the first pay free-for-all since 1987.

ICTU, for example, is planning a series of one-day national strikes if there is any attempt to impose a pay freeze on workers.

Already unions have started lodging pay claims of up to 10%,

more than three times what employers privately say they are willing to pay.

SIPTU, the largest union in the country, has instructed its branches to lodge pay claims of between 6% and 10%.

Observers say the filing of large claims has damaged prospects for a deal, as it has raised expectations among some unions of large pay rises.