The chasm between unions and employers remains so wide after two days of social partnership talks that both sides were today bracing themselves for a return to local bargaining.
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IBEC chief Mr O'Sullivan
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The director general of the employers' body, IBEC, Mr Turlough O'Sullivan blamed significant changes in the trade union position for the breakdown last night of talks on a possible successor to the Programme for Prosperity and Fairness at Government Buildings.
He said a document which included protections considered vital for employers was considered acceptable as a basis for an 18-month agreement at the start of the week.
However, during last night's talks it became clear "the congress were not prepared to deliver along those lines and were not prepared to sign up to anything that would give us reasonable assurance that a flexible agreement could be negotiated," said Mr O'Sullivan.
He also claimed the union demand for a 6.5 per cent pay rise over 18-months changed during the negotiations to a 7.5 per cent rise.
This view as rejected by general secretary of the Irish Congress of Trade Unions, Senator Joe O'Toole, who said three or four key issues in the proposals had to be added before it could provide the basis of an agreement.
He said the ICTU was trying to protect the living standards of works and their families. "The only offer which I heard from IBEC was 5 per cent over 18 months to be phased in following a pay pause". This was not acceptable to the ICTU said Mr O'Toole who stressed any deal had to be at least at the level of inflation.
The issue of union recognition also split the sides. The ICTU put forward a plan to accommodate workers who decide they want to be represented. IBEC is opposed to extended union recognition.
Mr O'Sullivan said employers needed to be assured that any agreement reached would be honoured by the unions. The failure of the ICTU to supply these assurances contributed to the collapse of the talks, he said.
In the Dáil today the Taoiseach, Mr Ahern, said he was concerned the basis of an agreement had dissipated over 10 hours of talks. "What is disappointing is it was hoped to complete the process today. I think on almost every point we went backwards yesterday."
The Taoiseach added he did not see Government intervention as being in the best interests of the process.
It now looks certain that the matter will be shelved until after Christmas. This delay places further stress on the talks not least because various price rises will have come into effect and this could push inflation closer to 6 per cent.
