Sunday 28 May 2017

If public servant pay restoration is accelerated, the rest of us will be left to suffer with more cuts

The most worrying upshot of the proposed special pay deal for gardaí is that it will likely lead to follow-on claims. Picture Colin Keegan, Collins Dublin.
The most worrying upshot of the proposed special pay deal for gardaí is that it will likely lead to follow-on claims. Picture Colin Keegan, Collins Dublin.

Gerard McMahon

Industrial relations conflict constitutes a formidable threat to the economy and the State. Whilst it's one thing for a recession or Brexit to upset our already fragile economic apple cart, it's another thing entirely when we start toppling the cart over ourselves.

Irish industrial relations history is like our economic history - a mix of good and bad phases. The current phase is definitely a bad one, but the indications are that things could get worse before they get better.

In the wake of the recent Garda pay offer, the harsh reality is that if public sector pay restoration is accelerated, then spending elsewhere must be stemmed. That is, unless economic growth cum tax revenues pleasantly surprise us, the vulnerable public will have to take yet another hit.

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