Unions will talk about pay deal but not cuts
THE head of the trade union movement has not ruled out talks with Government on a possible deferral of the national pay deal.
But Irish Congress of Trade Unions general secretary David Begg said unions would not tolerate any pay cuts in the public sector. He claimed any such cuts would lead the country into a deflationary spiral.
He was speaking as speculation mounted that Taoiseach Brian Cowen may ask the social partners to renegotiate the recently brokered pay deal or accept public sector pay cuts of up to 10pc to reduce the public finances deficit.
It is estimated that the first instalment of 3.5pc that is due to government employees in the new pay deal on September 1 will cost it around €600m alone.
The trade union leader said he was "really alarmed" about some of the public discourse on public sector cuts, including the suggestion that 70,000 workers should be axed.
Meanwhile, chief executive of the Irish Small and Medium Enterprises Association, Mark Fielding, said benchmarking had cost the country €1.7bn a year.
- Anne-Marie Walsh
