National News

Breakdown National Pay Talks - Towards 2016

As you are no doubt aware from media reports over the weekend, negotiations on the next module of Towards 2016 concluded at 4.00a.m. on Saturday August 2nd 2008, without agreement.

Members should note that the Congress negotiating team rejected the following "full and final settlement" offer from the Employers on pay.

A pay agreement of 21 months duration
A six month pay pause to apply in the Private Sector
A 2½% pay increase for six months
A 2½% pay increase for the remaining nine months

This 'offer' also included a demand from Employers that Unions accept the insertion of additional "opt-out" provisions for "companies in difficulty" under the Inability to Pay provisions of the Towards 2016 Agreement.

The Employers side additionally demanded that a pay pause of 12 months would come into force in the Construction Industry on the expiry of the first module of Towards 2016, and similarly that a pay pause of 11 months apply in the Public Sector.

There was no discussion on this particular demand, or on how the pay increases would apply in these sectors, within the 21month duration of the next pay module.

The decision of the Negotiating Team on the pay offer was endorsed by the Executive Council of ICTU at a special meeting, which was convened before the talks concluded.

The Executive Council also agreed that Private Sector Unions, whose existing pay agreement has already expired, or is about to expire, should now begin lodging pay claims with employers. A meeting of the Congress Private Sector Committee will take place tomorrow - Wednesday August 6th - to formulate a strategy.

The current Agreement on Public Service Pay and Related Issues does not expire until 31st December 2008.

The Public Services Committee of ICTU will meet during September to formulate its position as will the Central Executive Committee (ICTU).

Internally, we will brief and discuss options with Irish Committee members as further updates arise. Related matters will be listed for further discussion and consideration at the September meeting of the Irish Committee.

The Taoiseach has indicated that he will meet both Congress and the Employers separately at the end of August, "to discuss the arrangements that would operate in respect of pay and related matters in the period ahead".

A briefing note will be issued on any developments arising from that meeting.

Finally, for your information, although some progress was made during last week on the Agenda of non-pay work related items, no overall agreement was finalised. It is likely that this would also form part of the discussions with the Taoiseach.

Carla McCambridge: Senior Irish Organiser

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