Any public pay restoration will be spread over years, says Brendan Howlin

Tánaiste Joan Burton and Minister for Public Expenditure Brendan Howlin have indicated that any public sector pay rises will be staggered over a number of years.

Some unions have called for a full reversal of the pay cuts implemented during the financial crash, but Fine Gael sources have said a deal stretched out over a number of years will not lead to full restoration.

Mr Howlin is due to bring proposals to Cabinet in the coming weeks on the issue of public sector pay, and talks are expected to begin with unions next month.

The discussions will focus on unwinding measures introduced under the Financial Emergency Measures in the Public Interest (Fempi) Act, which cut public sector pay during the crash.

Speaking yesterday, Mr Howlin said any increases in pay would be “gradual”.

“What I have always said is that we won’t be able to undo the Fempi legislation in one year or, in fact, in two years either,” the Wexford TD said. “It will be a gradual increase to restore pay.”

Snapshot

The pay proposals will not form part of the spring economic statement next week. Mr Howlin said the statement would be a “snapshot of where we are”, as well as an assessment of progress made and where the country is going.

Ms Burton said while the shape of any pay agreement had yet to be discussed, deals stretched out over a number of years were normal.

“I think all of that is to be decided in discussions between the parties,” the Tánaiste said.

“Clearly in this country we are used to multiannual deals but we are coming out of an extraordinary difficult period in the economy’s history when huge sacrifices were made by people. Large numbers of jobs were lost.

“People in the public sector are particularly conscious of the sacrifices they have made, along with people in the private sector.

“It is important that we have a social dialogue between the Government and the unions, and Minister Howlin has plans to advance and progress that.”

Also speaking yesterday, Minister for Health Leo Varadkar said pay deals were "typically" multiannual.

“They are spread out over a number of years. What I would say is that public servants deserve some pay restoration after seven years of pay cuts and pay freezes. They have contributed hugely to the recovery. But at the same time the Government’s room to manoeuvre is limited.”