Key issues still to be resolved in pay talks

TALKS ON a new national pay deal were continuing last night, with unions and employers due to consider Government proposals on…

TALKS ON a new national pay deal were continuing last night, with unions and employers due to consider Government proposals on pensions and upskilling of workers.

Informed sources said the process was moving increasingly to deal with the more sensitive issues involved in any new deal - albeit at a slow pace.

However, it is understood that the crucial matters of pay, collective bargaining rights and the duration of any deal have yet to be addressed.

The parties had earlier considered proposals drawn up by Government representatives on the structure of any new deal, including inability-to-pay provisions and workplace relations and partnership at local levels.

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The talks, which have now been running for more than a week, are expected to enter their final phase today.

Union leaders said some progress had been made in recent days, but Ibec director general Turlough O'Sullivan said it was "far from certain" that a deal would be struck.

He said documents were still being developed and reviewed, but "a bit" of progress had been made over the weekend.

"That was helpful and it was encouraging after all these months of not very much progress so one would be a little more optimistic but it's still far from certain that we'll do it."

He said the "inability to pay" clause was more important in these talks than before.

This gives companies in difficulty some leeway to renegotiate terms and conditions.

"In some cases that has involved not paying the terms of the agreement or paying less than the terms of the agreement, getting cost off-setting measures in return to make it possible to pay it," he said.

"As everybody knows, the economy is in a less-favourable condition today than it was before, and so those sort of clauses will be more important for a lot of vulnerable companies in manufacturing, in hotels, in services."

Peter McLoone, Impact's general secretary, said he was confident the talks would finish tonight "one way or the other".

We are hoping at this stage that the outcome will be successful. Getting it through the members is another question, but we'll worry about that on Wednesday."

He said the union recognised that there were economic difficulties "but I think it is recognised that what we need is an agreement that will probably help to get us through these difficult times so we have to address the amount of increases, the duration and obviously when those increases begin to kick in."

He said these would be difficult issues, and they would probably be dealt with this evening in the closing stages.

He said employers must recognise the need for progress on collective bargaining. "But also we have problems around people who choose to join unions, who are having difficulty getting recognition in their workplaces, about whether these people would be subjected to victimisation and that needs to be addressed as well."

Siptu president Jack O'Connor said there would be no prospect of success unless assurances were given on the cost of living for the low paid. "I don't know ultimately what will emerge, but unless we achieve that I don't see a proposal having any prospect of succeeding."

As he entered the talks yesterday Ictu general secretary David Begg said "a little bit" of progress had been made "but it's still fifty fifty", that a deal would be done.

He expected to spend yesterday studying texts prepared by the Government secretariat which reflected the discussions so far and tried to find a middle ground.

The Irish Bank Officials Association general secretary Larry Broderick said collective bargaining was a major issue for the unions, and he would not accept there was a need for a pay pause.

"We are all very conscious of the economic crunch out there from a global perspective but Irish banks are still in a very strong position.

"They're still very profitable and we would expect a pay increase for our members this year as part of an agreement. Or if there isn't an agreement we will secure one at local level."