Staff in public service appear to be set for an increase in earnings of about €1,000 next year under a proposed pay restoration deal between the Government and trade unions.
A pay rise in 2017 has also been considered as part of an overall two-year extension to the existing Haddington Road agreement.
The increase in earnings next year would come from changes in the application of the public service pension levy, which was introduced in 2009 and averaged at about 7.5 per cent.
As some low-paid workers would not benefit proportionately from this mechanism, they may receive a top -up pay rise next year.
An overall deal would also involve increases for public service pensioners who faced cuts during the years of economic crisis.
Any boost for public service staff earnings that might be agreed for a second year is likely to come from an increase in pay rates rather than further changes to the pension levy.
Talks on an overall public service pay restoration agreement were continuing last night and informed sources said that at that stage no formal pay offer had been presented to the parties.
A wide range of other non-pay issues had been addressed as part of the talks, which had been under way for the last fortnight.
Labour costs
Under one key proposal, it is understood new restrictions will be put in place on any new outsourcing initiative. Sources said that, under the proposal, labour costs would have to be excluded from any cost-benefit analysis of the outsourcing of any service. This issue has been a priority for Siptu.
In return for pay restoration, trade unions representing staff in the public service would be obliged to reaffirm commitments to solve disputes by peaceful means through binding arbitration.
Government sources have argued there had been some “slippage” in relation to industrial relations peace in the public service in recent times.
‘Flexibilities’
A senior Government source last night told The Irish Times the draft agreement involved "a recommitment to and extension of the Haddington Road flexibilities and a strengthening of the mechanisms designed to facilitate change and reform the public service".
“The relationship between pay and reform has been established and will not be broken.”
The Government gave a commitment last year that it would begin the unwinding of financial emergency legislation that underpinned various cuts in public service pay and pensions introduced since 2009.
Minister for Public Expenditure and Reform Brendan Howlin indicated over recent weeks that his priority in the pay restoration talks would be to assist those on low pay.
Trade unions had argued that this could best be achieved by means of a flat-rate increase – secured by changing the application of the pension levy – rather than through a percentage-based rise, which would give greater benefit to the better-off.
The talks on public service pay restoration, which have been under way since May 11th, are being facilitated by the Labour Relations Commission.
Any outcome of the talks would have to be put out to ballot by trade unions and other bodies representing about 300,000 staff across the public service.
