Public service pay restoration talks to start next week

Simon Harris suggests staff could earn more from cut in pay levies than from wage rise

Minister of State at the Department of Finance Simon Harris. Mr Harris has signalled that the Government’s reform plans in relation to the public service would have to continue for some time.  Photograph: Dara Mac Dónaill/The Irish Times
Minister of State at the Department of Finance Simon Harris. Mr Harris has signalled that the Government’s reform plans in relation to the public service would have to continue for some time. Photograph: Dara Mac Dónaill/The Irish Times

Formal talks between the Government and unions on restoring pay levels for about 300,000 staff across the public service are now expected to get under way tomorrow week, May 12th.

Last week the Minister for Public Expenditure and Reform, Brendan Howlin wrote to the public service committee of the Irish Congress of Trade Unions.

He invited it to take part in a process aimed at unwinding financial emergency legislation that had underpinned various pay and pension cuts since 2009.

Separately yesterday, a Government Minister suggested that reducing the rate of some pay-related deductions taken from the salaries of public service staff could lead to them receiving a greater increase in overall earnings than would materialise from a straightforward wage rise.

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Impact

Minister of State at the

Department of Finance

Simon Harris

said cuts involving pay related deductions from salary could have a greater impact on net take-home pay for workers. And they would not affect gross pay levels or the country’s competitiveness.

The Minister in an interview on RTÉ’s This Week programme did not identify any particular pay-related deductions, but it is understood he was referring to the public service pension levy.

This was imposed in 2009 and on average hit salaries of public service staff by about 7 per cent.

Mr Harris also signalled that the Government’s reform plans in relation to the public service would have to continue for some time.

However he said it would be up to each sector in the public service, rather than the Department of Public Expenditure centrally, to outline reform plans.

“Let me be very clear, reform is not something that ends. It is a continuous journey,” he said.

Last month The Irish Times reported that a number of Fine Gael Ministers, including Leo Varadkar and Richard Bruton, had linked the provision of additional productivity by staff to pay restoration for public servants. This suggestion was strongly rejected by trade unions.

Reversal

In the week ahead members of the

Irish Nurses and Midwives Organisation

at its annual conference are expected to call for a reversal in the additional 1.5 hours per week they were obliged to provide without additional pay under the terms of the 2013 Haddington Road agreement.

Such a move is likely to be strongly resisted by the Government.

Martin Wall

Martin Wall

Martin Wall is the Public Policy Correspondent of The Irish Times.