Ireland’s Tánaiste (Deputy Prime Minister) says Government borrowing to cope with the COVID-19 pandemic will rule out any significant pay increases next year for Ireland’s 340,000 public sector workers.
Leo Varadkar (pictured), who is also Minister for Enterprise, Trade and Employment, suggested the lowest-paid Public Servants should be targeted for wage rises rather than any across-the-board deal.
“I think there is a general level of appreciation from everyone, that because of the level of borrowing the Government is incurring this year and next, the capacity for significant public sector pay increases just isn’t there,” Mr Varadkar said.
His comments came as formal negotiations on a new Public Service pay agreement are to begin, with Minister for Public Expenditure and Reform, Michael McGrath issuing an invitation to unions to attend talks.
Mr McGrath said that having discussed the matter with his Government colleagues, he believed an opportunity now existed to intensify talks on an appropriate successor to the Public Service Stability Agreement, which expires at the end of December.
“These will be difficult discussions against a very challenging backdrop,” Mr McGrath said.
“Any agreement has to be appropriate to the context the country is currently facing and must be sustainable in the face of considerable economic uncertainty.”
However, he expressed the view that there was scope for all parties to engage constructively towards an agreement benefitting everyone.
Dublin, 28 November 2020
