MSF calls for 26% wage increase in new pay agreement

MSF, the largest white collar union in the financial services sector, is calling for pay increases of 26 per cent over the next…

MSF, the largest white collar union in the financial services sector, is calling for pay increases of 26 per cent over the next three years in any successor to Partnership 2000. The union also represents key management and technical grades in the semi-state and private sectors.

It sent out ballot papers to its 21,000 members in the Republic this week asking them whether the union should enter talks on a new national agreement. Details of the pay proposal and other union priorities in areas such as tax reform and child care are attached to the ballot paper. When the votes are counted in three weeks they should provide an early indicator of trade union feeling on a successor to Partnership 2000.

The ballot result will also determine how the union delegation will vote at the special delegate conference of the Irish Congress of Trade Unions on November 4th. The union is not simply asking members to vote yes or no, but is outlining the terms on which it believes talks should take place.

MSF deputy national secretary, Mr Jerry Shanahan, believes members will almost certainly vote for entering talks with the social partners, but that the ballot will provide a marker against which to set progress made in the negotiations.

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The pay terms include "an annual average increase of 8 per cent, or a cumulative increase of 26 per cent over 36 months". A cost of living increase of 23 per cent a year should be supplemented in the private sector with local increases made up "of any of the following, or any combination thereof: straight cash increase, profit sharing/gain-sharing, transfer of shares to employees individually or through employee share option plan or trust arrangements increased holidays, reduced working hours, enhanced pension provision".

It calls for separate pay agreements in the private and public sectors, but with the same overall increases, or their equivalent in non-pay concessions. Other priorities include substantial increases in the PAYE allowance, a new intermediate tax rate of 35 per cent on earners up to £30,000 (€38,119), and the national minimum wage to be set at two-thirds of the average industrial wage.

Increasing occupational pension cover in the private sector, more family friendly workplaces, and action on house prices and rents are included in the union's demands. On corporate taxation, it calls for a restoration of capital gains tax to 40 per cent and corporation profits tax to be set at 20 per cent for all by 2006.

Most unions, including the 10,000-strong Irish Bank Officials Association (IBOA), are expected to undertake more limited consultative processes at this stage in the process. The IBOA will hold a special delegate conference of branch activists next week to ascertain views on entering talks.

Its general secretary, Mr Ciaran Ryan, expects delegates will want any new pact to stress local bargaining "given the profits of the companies we're dealing with".