Talks hinge on pay freeze, overtime cut
Controversial 'leave' plan is still in mix
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AN across-the-board pay freeze and dramatic cuts to overtime allowances last night became the focus of desperate attempts to save €1.3bn from the public-sector wage bill in next week's Budget.
But talks between unions and the Government were log-jammed with slim hopes of a deal emerging, after the backlash over an unpaid leave scheme.
Government officials were sceptical about the prospect of a deal. "I think we are too far away and too close to the deadline," one source told the Irish Independent.
Following a further day of confusion, the controversial proposal to give public sector workers unpaid leave, instead of cutting their pay scales, is also still on the table.
Taoiseach Brian Cowen was on call at Government Buildings last night as his officials and union leaders tried to finalise a deal ahead of next week's Budget.
The Government continues to insist it is targeting €1.3bn and all savings must be permanent, not affect public services and be part of a wider package of public sector reform.
The deferral of set pay rises, known as increments, and the slashing of the overtime bill were on the table as efforts continued to avoid a straight pay cut.
But the unpaid leave deal with the unions came under severe criticism from Fianna Fail backbenchers.
Fianna Fail TDs told Mr Cowen they did not believe giving public sector workers unpaid leave was taking the tough decisions necessary.
The attacks sparked one union leader to angrily tell those outside the talks to "keep their mouths shut until we see what happens".
The talks entered a vital stage with the Coalition keen to get a deal before the weekend to allow Finance Minister Brian Lenihan to finalise his Budget plans.
Under the longer hours solution, workers would receive basic pay for any hours worked between 8am and 8pm. The Government estimates this would save €700m, although unions argue it could generate up to €800m savings.
The measure would have serious implications for frontline staff, as it would affect overtime rates and certain allowances.
Sections where it might work and make major overtime savings include the Prisons Service, gardai, junior doctors and some local authority services, including emergency services, waterworks, sewage and bin collection.
The Government will seek to reduce overtime as close as possible to basic pay, while the measure will have a direct impact on certain allowances, including 'on call' payments.
Sources said some measure of the major transformational proposal of extending the working week, which would wipe out a large amount of overtime and allowances, would be a central part of discussions on bridging measures for next year.
The potential savings that could be made by reducing the pay of top public service grades, which is expected as a result of the report of the Higher Review Body, are only expected to bring in up to €100m at most.
As time ticks down to the Budget, the Government was embroiled in what may prove the toughest and most critical negotiations of its life last night.
Both sides vied to reach agreement on an alternative to Mr Lenihan announcing a 6.85pc pay cut next Wednesday, but government officials were growing uneasy.
Deadline
Officials at the Department of Finance said talking would have to stop soon as Budget documents would have to be printed from Sunday.
Fianna Fail TD Mary O'Rourke, Mr Lenihan's aunt, claimed the Government was not going down the route of unpaid leave. But there was no confirmation whatsoever that unpaid leave would not form part of the final package.
Tanaiste Mary Coughlan said the proposals for reducing the bill through unpaid leave did not provide the basis for agreement in their present form.
She said the savings needed to be permanent and not damage public services.
Irish Nurses Organisation general secretary Liam Doran accused critics of "throwing rocks and stones at one another", saying this was most unhelpful for the whole country.
"So I think we have to pause for breath, and those who don't know much about what we are talking about should keep their mouths shut until we see what happens," he said.
Fine Gael TD Leo Varadkar responded by rejecting his "uno duce, uno voce outburst" and pointed out the measure would take 250 million hours out of the public service.
- Anne-Marie Walsh and Fionnan Sheahan
Irish Independent
