The seven key points

The Taoiseach, Tánaiste and Minister for Finance have made seven proposals on the proposed agreement.

The Taoiseach, Tánaiste and Minister for Finance have made seven proposals on the proposed agreement.

1. Representation: the Government is prepared to propose amending legislation and developments in statutory codes to enhance the procedures by which unions can represent their members' interests.

2. Housing: In the context of the shared commitment to increase the supply of affordable housing, the Government is agreeable to a proposal to develop a new initiative with the social partners utilising the National Development Finance Agency.

3. Inflation: the Government is prepared to develop with the social partners a new anti-inflationary initiative targeting key sources of inflationary pressure.

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4. Statutory redundancy: the Government is prepared to enhance statutory redundancy terms to provide for 2 weeks for each year of service, with the abolition of differentiation by age and retaining the existing bonus week in the calculation of payments.

5. Statutory minimum wage: the Government is prepared to increase the statutory minimum wage to €7 an hour from February 1st, 2004.

6. Pay terms: The recommendation is that the pay agreement should provide for an increase of 7 per cent over 18 months implemented in the private sector as follows: 3 per cent for nine months, 2 per cent for six months and 2 per cent for three months.

7. Public service pay: The same terms would apply in the public service, with an initial six-month pay pause, as follows: 3 per cent from January 1st, 2004; 2 per cent from July 1st, 2004, and 2 per cent from December 1st, 2004. In association with this increase and subject to final agreement on a modernisation programme for the public service, the benchmarking report awards would be implemented as follows: 25 per cent backdated to December 1st, 2001; 50 per cent from January 1st, 2004; 25 per cent from June 1st, 2005.