The Irish Government has conceded that negotiations with Public Service unions later this year will involve salary increases.
Tánaiste (Deputy Prime Minister), Leo Varadkar said inflation was rising so it was inevitable that any new agreement would include pay hikes.
Mr Varadkar (pictured) said that when the last agreement was negotiated inflation was projected to be very low, maybe between zero and two per cent.
“It’s now five per cent, so it is reasonable the unions will come forward now and say that we need to look at this pay deal again,” Mr Varadkar said.
“However, it’s absolutely the case that if the Government were to agree to any further pay increases this year, we would be looking for something in return, particularly around productivity.”
Asked by journalists if that would mean extra working hours, he said it was not necessarily the case.
“It could mean additional flexibilities; it could mean changes in working practices, but this is the normal course of events,” Mr Varadkar said.
“We negotiate a public sector pay deal every couple of years,” the Tánaiste said.
“I do want to say the Government very much recognises that inflation is very high. The cost of living is impacting on businesses, on people.
“A lot of households are struggling to make ends meet, and there are a lot of things we can do to help with the cost of living,” he said.
Dublin, 18 January 2022
