Pay talks: McGrath defends 5% offer rejected by public sector unions

Micheal McGrath has defended the Government’s pay offer which was rejected by public sector unions and said there had to be a “realistic basis” for a deal.

The Minister for Public Expenditure said he hopes talks with the unions can resume and said the Government was keen to resume talks.

He stopped short of saying whether the Government would make a new offer.

Talks stalled last week when unions rejected an offer of a 5 per cent pay increase over two years.

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The Irish Congress of Trade Unions said the offer fell “far short” of projected inflation and could not credibly be put to union members to vote on.

Speaking at Monday’s National Economic Dialogue (NED) Mr McGrath said a collective agreement was in everyone’s interest as it would provide industrial peace.

Such an agreement gives certainty over “a very large area of public expenditure” that amounts to a third of Government spending, he said.

Mr McGrath said: “I think the offer that was made by Government over the course of discussions was a good offer.

“It went a long way towards matching the projected level of inflation.

“But we have to ensure that any deal is affordable and it is sustainable. We’ve consistently made the point that it cannot fall to pay alone to fully offset the impact of inflation.

“Account has to be taken of the other measures we’ve already taken and indeed the measures that we plan to take in the Budget to address the cost of living so I do hope we can get back into discussions.”

He added: “The Government’s door is very much open but there has to be a realistic basis for reaching an agreement in those discussions.”

At the same press conference Taoiseach Micheál Martin was asked if it was prudent to offer a non-targeted pay deal to public sector workers at a time when every worker in the State was struggling with the cost of living.

He said there were pay discussions in the private and public sectors and the State was a major employer.

“There’s an obligation on Government to enter into discussions and negotiations with public servants,” Mr Martin said.

Mr Martin went on: “What is important is that we reach an accommodation here that’s balanced, that’s fair, but also takes into account other demands that Government have (sic) particularly on the expenditure front.”

Mr Martin also said: “When people talk about budgets and packages for example, we have to work out the expenditure levels of every single government department. All of that as an impact on the cost of living.

“So for example, the capacity for Government to deal effectively with childcare costs is linked to expenditure in pay and elsewhere.

“Likewise, in housing, and other areas, what we want to do particular take particular measures to reduce pressures on people.”