Wednesday, February 10 2010

National News

Union chief concedes that €1.3bn payroll cut is needed

By Anne-Marie Walsh Industry Correspondent

Wednesday November 25 2009

THE most senior public sector union negotiator last night admitted for the first time it is "necessary" to find ways to cut €1.3bn from the State payroll.

Peter McLoone ruled out any permanent or temporary pay cuts but it is understood that he will present the Government with cuts by another name.

Speaking as 250,000 workers effectively closed down the entire public service for 24 hours yesterday, he said it would be "necessary" to agree "temporary measures" to cut the payroll next year.

He admitted reforms would not be enough to give the savings that are needed before 2011.

Sources revealed that one of the alternatives he may examine at talks with the Government, which re-start today, will be compulsory unpaid leave.

A proposal that could see public servants take 12 days off per year, amounting to roughly two weeks' gross salary, could make up the bulk of the savings.

The amount of days taken may be based on a worker's total earnings, meaning that higher-paid workers would take most of the leave.

But senior sources last night said this measure was unlikely to apply to frontline workers or areas where there are staff shortages, like speech therapy.

It is understood that the Government's plans to extend the working week across the public sector, particularly from 8am to 8pm in the health sector, thereby scrapping overtime rates, would not be enough to get the savings on its own.

Talks

Despite agreeing to go back to talks, The Irish Congress of Trade Unions' Public Services Committee yesterday set a date next Thursday week for another national strike.

But Committee chairman Mr McLoone appeared set to strike a deal that would be rubberstamped by the unions. The union leader appeared determined to avoid the eventually that the Finance Minister would impose another cut to basic pay of 6.5pc, just months after the pension levy took a similar amount from wages.

"I believe it is possible to agree an alternative that will achieve the savings the Government requires," he said.

The possibility of another strike is throwing up difficulties for two public sector unions.

The Association of Higher Civil and Public Servants and the Irish Federation of University Teachers have only balloted for a one-day strike. They do not have a mandate for a second strike -- and do not have time to ballot and serve the required seven day's legal notice.

- Anne-Marie Walsh Industry Correspondent

Irish Independent

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