Avoiding tricky questions on public pay
Thursday November 26 2009
IT seems to me that with all the discussion surrounding public sector pay, the relevant questions on pay and reform are just not being asked of trade union leaders.
The issue is not how much someone is making today, but rather by how much have salaries increased by in the last number of years. By way of example, it's widely reported that public service pay increased by, on average, 59pc in the period 2001 to 2006, driven in large part by benchmarking.
By comparison, the average industrial wage rose by 19pc in that period. Can trade union leaders (or Brian Cowen for that matter) outline precisely what reforms were achieved in return for these increases? If the social partners are still discussing public sector privilege days and time off to cash cheques, then it's probably safe to assume no reform has been achieved.
I will concede that public sector workers may not have directly "caused the crisis," but cannot ignore the fact that, via benchmarking, they contributed handsomely to the mess we now find ourselves in. The abject greed in stuffing one's pockets with salary increases while giving nothing in return in terms of reform is nothing short of scandalous.
This sense of denial manifests itself constantly in the depiction of the 7.5pc pension contribution as a reduction in pay. This is a deferred benefit and guaranteed. If it's OK for public sector employees to mimic the private sector when it comes to pay increases, then they cannot be permitted to conveniently disregard all other aspects of private sector remuneration. Private sector workers contribute to their own pensions, many of which are now valued at levels below the sum of the contributions.
The Government needs to stop abdicating its responsibility to lead. Negotiating with unelected trade union leaders will lead nowhere. As recently as Tuesday, Peter McLoone referred to "temporary" reform measures, thereby seeing no issue with a permanently high cost base paid for by a volatile and dwindling revenue base.
The Government and all public sector stakeholders need to get real.
Jim Boylan
Dartry
Dublin 6
Irish Independent
