Cuts over a few years may be considered

THE DEPARTMENT of Finance is understood to have indicated to trade unions that the Government would consider proposals to reduce…

THE DEPARTMENT of Finance is understood to have indicated to trade unions that the Government would consider proposals to reduce the cost of the public sector pay bill over a number of years rather than having the talks on this issue deal only with measures to be introduced for 2010.

Unions expect that the department will provide a definitive position on this issue as well as on their request for the Government’s vision for the size and scale of the public service in the future when the talks resume next week.

Talks between public sector unions and the department on Government proposals to cut the public sector pay bill by €1.3 billion next year have been under way since last Wednesday.

The Irish Timesunderstands that one idea being discussed privately by some parties would involve "temporary measures" – most probably reductions in some aspects of non-core pay – being introduced next year but removed again in 2011.

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Under this proposal, which has not been formally put forward, cost reductions in 2011 and 2012 would come about mainly through reductions in public sector numbers and through reforms and efficiencies.

However, it is expected that any move to reduce non-core payments would be strongly resisted by trade unions and associations in the Frontline 24/7 Alliance which represent staff such as nurses and gardaí, who receive predominantly more in earnings from these sources than other groups.

Discussions on how frontline workers are to support the Irish Congress of Trade Unions’ protests scheduled for next week, are to take place on Monday.

The alliance, which yesterday said it will support congress plans for protests, includes unions which are not members of congress – such as the Garda Representative Association and the Psychiatric Nurses’ Association.

Martin Wall

Martin Wall

Martin Wall is the former Washington Correspondent of The Irish Times. He was previously industry correspondent