Government must make good ‘shortfall’ in public sector pay due to inflation, says union chief

Cost-of-living issues set to dominate talks in any new pay deal, according to Ictu president

Irish Congress of Trade Unions president Kevin Callinan said the European Central Bank has identified 'excessive company profits' as a bigger driver of inflation than wage demand. Photograph: Gareth Chaney/Collins
Irish Congress of Trade Unions president Kevin Callinan said the European Central Bank has identified 'excessive company profits' as a bigger driver of inflation than wage demand. Photograph: Gareth Chaney/Collins

President of the Irish Congress of Trade Unions (Ictu) has rejected calls for wage moderation and said the Government will need to “make good the shortfall in pay against inflation” during the remaining term of the current public sector pay agreement.

Kevin Callinan, who chairs Ictu’s influential public services committee, made the comments in an address to the Irish National Teachers’ Organisation (INTO) annual congress which got under way in Killarney on Monday.

The current public service pay agreement expires at the end of 2023. Talks on a successor agreement are likely to take place in the coming months.

Proposed agreement

Mr Callinan said unions will concentrate on cost-of-living issues during pay talks, including the effect of ending Government-funded financial supports for energy bills, over the period of any proposed agreement.

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He said unions were clear that last year’s review of the Building Momentum pay deal did not fully compensate for the rate of inflation, which averaged 8 per cent over 2022.

“When workers were weighing up the terms, they were mindful of Government statements of intent to introduce various measures, including budgetary tax changes,” he said.

“We’ve already made it clear to Government and employers if these supports are withdrawn and if prices remain elevated — as they surely will — the shortfall will have to be made good in wage bargaining across the economy.”

Mr Callinan said the European Central Bank has identified “excessive company profits” as a bigger driver of inflation than wage demand.

“Many commentators are quick to try to dampen down wage demands with talk of a wage-price spiral. Working people can see through those arguments, particularly when they are exposed to obvious price-gouging,” he said.

“To be clear, there can be no sustainable case for wage moderation while inflation continues to be driven by excessive company profits, neither in the public or private sector.”

Delegates at a recent Irish National Teachers’ Organisation’s annual congress in Killarney. Photograph: Moya Nolan
Delegates at a recent Irish National Teachers’ Organisation’s annual congress in Killarney. Photograph: Moya Nolan

In a separate address, INTO president John Driscoll said upcoming public sector pay talks must deliver “substantial increases” to retain teachers and to ensure schools continue to attract the best.

“When professionals such as teachers are struggling with the basic cost of living, it is glaringly evident that significant intervention is essential,” he said.

Mr Driscoll said newly qualified teachers enter the system with energy and enthusiasm and maintaining this was essential.

“Ensuring an attractive salary, commensurate with the status and responsibility of the profession, conditions conducive to best practice and a clear career structure must be in place if we are sincere in our desire of having the best education system in Europe.,” he said.

Class sizes

He also called for action to continue to reduce class sizes at primary level which, despite progress over recent years, are among the largest in Europe.

“INTO has campaigned to reach the European class average of 20 pupils. Again, if we are serious about being the best, we must aim higher — or in this case lower!”

Mr Driscoll also added that the “ever-expanding administrative workload” facing principals is causing “a general sense of stress”.

A number of measures are needed, he said, including a reduction in administrative tasks — including school building or renovation projects — and the full restoration of middle management posts.

“Doing this would foster proper distributive leadership and ultimately make a difference to the life of every pupil,” he said. “It would allow leaders to focus on leading teaching and learning which is close to their hearts and by far the most important aspect of the job.”

Carl O'Brien

Carl O'Brien

Carl O'Brien is Education Editor of The Irish Times. He was previously chief reporter and social affairs correspondent