An average pay increase of 9 per cent for the State's 280,000 public servants has been recommended by the benchmarking pay review body, The Irish Times has learned.
The benchmarking body's report - to be published on Monday - will increase the pressure on the public finances, with teachers faring best. The Government will be concerned that the low awards for some groups, such as nurses, could cause strike action across the public service. A 9 per cent increase for the public service would cost about €1 billion per year.
In its latest bulletin, the Central Bank has already warned the Government that it risks censure from the European Commission for breaching EU guidelines by overspending.
Teachers fare best among public servants, with a recommended increase of 13 per cent. But other sectors do not fare so well; the proposed increase for most nursing grades is 8 per cent, while members of the Garda will receive an increase of 5 per cent.
The report says that the high overtime payments received by both gardaí and prison officers must be addressed. Members of the Defence Forces and prison officers are getting about 4 per cent.
Principal officers in the Civil Service should get 11.7 per cent, assistant principals will get 13.8 per cent and higher executive officers will get 10 per cent.
University lecturers should receive a recommended 3 per cent increase, although lecturers in the various Institutes of Technology should receive 11 per cent. Some smaller grades have done particularly well: ambulance drivers, for example, are due to get 25 per cent.
The report recommends increases of up to 15 per cent for some nurses in senior management posts. It proposes a similar increase for principals of large secondary schools. In general, those groups who fared well under "special" pay deals in recent years fare badly in the report; those, like teachers, who were seen to lose out in the past, fare relatively well.
Nursing unions have already signalled their readiness to take industrial action unless they get well over 15 per cent.
The teaching unions will meet next week to frame their response to the report. Both the INTO and the TUI were seeking a much higher increase. It remains to be seen whether benchmarking will trigger a fresh wave of strike action in schools. Union sources said much will depend on the timescale for payment of the increase.
They will be disappointed that the demand for a reduction in the very long pay scale for teachers has not been met by the benchmarking body. However, between the Partnership for Prosperity and Fairness (PPF), supervision payments and this latest award, teachers are set to gain about a 40 per cent rise in pay.
The ASTI, which was seeking a 30 per cent increase, did not take part in the benchmarking process. It is likely to join the other teaching unions in discussions on the report shortly, but it is unclear whether the union will ballot on the benchmarking report.
The Government is already committed to paying one-quarter of any increase from last December. Negotiations on the phasing-in of the remainder will begin shortly. The benchmarking report says payment of the balance should be linked to changes in work practices and/or normal co-operation with modernisation programmes.
Ideally, the Government would like to spread out payment of the balance until 2004, but the public-service unions will not tolerate this timescale.
The Government will seek to fend off criticism by stressing that public servants have already received over 20 per cent from the current national pay deal. Established under the PPF, the benchmarking body spent two years comparing public-service pay to conditions in the private sector.
The body was chaired by Mr Justice John Quirke. Other members included Mr Bill Atlee, former SIPTU president; Mr Phil Flynn, former ICTU president; Mr John Dunne, former director-general of IBEC; Mr Paddy Mullarkey, former secretary-general of the Department of Finance; and Ms Maureen Lynott, a consultant.
Mr Jim O'Leary, an economist, resigned from the body last April.
Pay rise set to put a spring in the step of teachers: page 5
Editorial comment: page 15
The following are the pay increases recommended by the benchmarking body:
Public service average: 9 per cent
Teachers: 13 per cent
Garda: 5 per cent
Members of the Defence Forces: 4 per cent
Prison officers: 4 per cent
Nurses (most grades): 8 per cent
University lecturers: 3 per cent
Lecturers in ITs: 11 per cent
Principal officers: 11.7 per cent
Assistant principal officers: 13.8 per cent
Higher executive officers: 10 per cent