Impact executive rejects public sector deal with Government

IN A major setback for the proposed new agreement on public sector pay and reform, the executive of the country’s largest public…

IN A major setback for the proposed new agreement on public sector pay and reform, the executive of the country’s largest public sector union has rejected the deal which was negotiated with the Government last week.

Following a four-hour meeting yesterday afternoon, the 23-member central executive committee of Impact said the proposed deal “did not provide the certainty that its members had sought over pay, pensions and job security”.

Impact general secretary-designate Shay Cody told The Irish Timeslast night that the executive believed it could not "sell" the deal to members.

Impact is to ballot its 55,000 public service members on the deal over the next few weeks and a result is expected by mid-May.

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In the meantime, the industrial action that its members have been engaged in for nearly two months will continue.

Mr Cody said the committee had concerns that while public servants would meet their side of the bargain, there was no certainty the Government would honour its part.

Mr Cody said the Government’s handling of the banking crisis had also played a significant part in the executive’s decision to reject the deal. He described as a “catastrophic issue” the decision of Anglo Irish Bank to award pay increases to some of its staff.

Impact general secretary Peter McLoone, who is also chairman of the public service committee of the Irish Congress of Trade Unions (Ictu), was one of the main architects of the deal brokered at Croke Park last week and it was widely expected that the union’s executive would back the proposals agreed.

Separately yesterday, the executive of the union representing higher civil servants, AHPS, is to recommend acceptance of the Croke Park deal in a ballot of members. The leadership of the primary teachers’ union INTO and the Public Service Executive Union, which represents mid-ranking civil servants, have backed the deal. But members of the other teaching unions, the TUI and ASTI, rejected it at their conferences.

Siptu president Jack O’Connor has warned that the rejection of the proposed deal could result in an even worse outcome for public servants.

A message from Mr O’Connor to Siptu members, published yesterday in the union’s Liberty newsletter, said the Government was committed to a fiscal plan which entailed further cuts in 2011 and 2012 and that public servants could have their salaries reduced even further if the pay and reform deal was not implemented.

“We can escalate the action which is at the point of moving to extensive withdrawals of labour. This could result in a better outcome but it will not produce reinstatement of the pay scales in the short term,” he said.

Earlier yesterday, Taoiseach Brian Cowen said he was confident that public sector employees would view it as “the best that can be achieved in present circumstances. What’s important is that unions and their executives and ordinary members have to be given an opportunity to reflect on the job security that [the agreement] provides,” he said.

Martin Wall

Martin Wall

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