Saturday 24 September 2016

€566m: the price of public sector votes

Published 30/05/2015 | 02:30

Minister Brendan Howlin briefs the media on the Lansdowne Road agreement at Lansdowne House in Dublin
Minister Brendan Howlin briefs the media on the Lansdowne Road agreement at Lansdowne House in Dublin

The Coalition stepped up its bid to buy re-election with a €566m pay deal that demands little in return from the country's 290,000 public servants.

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State employees are set to receive an average of €2,000 each over the next two years - on top of the USC cuts and tax reductions due to feature in October's Budget.

Thousands of workers will see a significant reduction in their pension levy, as well as pay rises of up to 2.5pc - without having to give anything back in terms of productivity.

And the Irish Independent can reveal that Taoiseach Enda Kenny's officials made an 11th-hour intervention to prevent further income boosts for higher-paid public servants.

A late decision was also taken to exempt Government ministers from the 'Lansdowne Road Agreement'.

A senior source in the negotiations described the package, which requires approval from all public sector unions, as a "vote for industrial peace".

Irish Independent

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