Ibec dismisses 'unrealistic' expectations of pay rises

A DEFERRAL of pay increases until 2011 is being sought by the employers’ body Ibec in any new talks on a social partnership deal…

A DEFERRAL of pay increases until 2011 is being sought by the employers’ body Ibec in any new talks on a social partnership deal.

It said yesterday it was prepared to walk away from the partnership process if an agreement did not contain a pay freeze of that duration.

In a statement last night, Ibec said any expectations of pay rises next year were “unrealistic”.

It again called for the pay terms of the national agreement negotiated in September 2008 to be formally suspended. It said this pay agreement – which provided for increases of 6 per cent phased over 21 months – was no longer sustainable.

READ MORE

The employers’ body urged the Government to bring the social partners back to negotiations “for a final effort to conclude an agreement on national recovery with a focus on tackling our unemployment crisis”.

Talks between the Government, unions and employers which have been under way, on and off, since January have failed to find a basis for an overall agreed economic recovery programme.

Last week the Irish Congress of Trade Unions (Ictu) announced a campaign of opposition to any unilateral moves by the Government to cut pay and public services. It is to hold a national day of protest on November 6th.

Separately, the unions Siptu and Impact have warned of possible strikes in the months ahead.

Ibec said that at a series of meetings around the country in the last fortnight its member organisations expressed a strong preference “for tackling the national jobs crisis through a partnership approach”.

“However, such an approach is only of interest if it focuses on reducing costs and improving Ireland’s competitive position,” it said.

Ibec director general Danny McCoy said: “Lack of jobs is the single biggest issue facing our economy, but only competitive businesses can sustain and create employment.”

Mr McCoy said if consensus could not be reached in coming weeks Ibec “will take its own decision in relation to its continued participation in the pay agreement, taking account of the pressure on most businesses to do what is necessary to survive and retain jobs”.

Siptu president Jack O’Connor said yesterday he would be willing to re-enter into talks with the Government.

Speaking on RTÉ's This Weekprogramme ahead of his union's biennial delegate conference in Tralee this week, he said he believed the only viable way ahead was by way of an agreement.

However, he said there was not going to be an agreement on the basis that working people and those who depended on public services would shoulder the burden “while people at the top of society are insulated”.