Ireland’s public sector unions have rejected a Government pay increase of five per cent over two years saying it falls far short of inflation.
The Government, represented by officials from the Department of Public Expenditure, argued that the offer of a 2.5 per cent pay increase this year and a further 2.5 per cent next year came on top of a two per cent pay rise this year.
Officials said this amounted to seven per cent over two years, costing the Exchequer an additional €1.2 billion ($A1.82 billion).
However, unions said they could not recommend the deal to their members at a time when inflation was running at a considerably higher rate than the Government’s offer.
Senior officials said the two sides were likely to meet again in the next few days in an attempt to rescue the deal.
Failure to reach a new agreement would raise the prospect of industrial unrest.
Chair of the Irish Congress of Trade Union’s Public Services Committee, Kevin Callinan said the Government offer could not credibly be put to union members to vote on.
“The real-term shortfall between the modest pay increases in the current Public Service agreement and rising living costs is huge and could yet grow,” Mr Callinan (pictured) said.
“Against this background, the Government’s proposals would leave low and middle-income Public Servants struggling to pay essential bills,” he said.
“It would send a message to employers across the economy that workers alone must pick up the tab for out-of-control price hikes.”
Minister for Public Expenditure, Michael McGrath said it was disappointing that the talks had not yet delivered an agreed outcome.
“I understand the Workplace Relations Commission has asked all sides to reflect on their positions and will continue to engage with the parties,” Mr McGrath said.
“There are obviously limits to what the Government can do given the many expenditure pressures it is facing.”
Dublin, 20 June 2022
