A successor to the ‘Croke Park Agreement’ has been finalized that will see cuts of 1 Billion Euro from the Government pay bill. The deal includes pay cuts for all staff, and up to 10% for top-earners, additional hours of work at no extra pay, and reductions in allowances and premium payments.
As many as nine Unions have already indicated that they will not support the new deal and are recommending that their membership reject it. The consequences of being outside of the new arrangements are likely to make for a very difficult situation for the Unions. It is very likely that the Government will unilaterally reduce the pay of those staff who do sign up to the deal, a step that will almost certainly cause strikes.
The Government seems to be playing hardball this time around. The new proposals actually provide for some compensation to public servants in two years time in certain situations, but only to those Unions that sign up to the deal. Those staff who opt out will not receive the agreed compensation. Divide and conqueror seems to be the tactic.
Similarly the deal provides for zero compulsory redundancies for those Unions that sign up – a huge concession given the current unemployment rate of over 14%. Those left outside the umbrella of the agreement however will have no such comfort and may see compulsory redundancies implemented, on top of compulsory pay cuts.
The divisions in the Unions are becoming apparent. The huge Impact Union that represents over 63,000 public servants has recommended that the deal be accepted. The Irish Nurses and Midwives Organisation however is to recommend rejection of the deal to its 40,000 members. Similarly Teachers Unions have rejected the deal. Already a group representing Gardai, Nurses, Paramedics and Fire-Fighters, some 70,00 public servants, has been formed to co-ordinate its opposition to the deal.
The problem with the deal from a Union perspective is that it requires every public servant to take a pay cut. While this may seem reasonable in the case of a person earning over 65,000 euro per year it is a lot harder on lower paid civil and public servants, nurses and front-line staff, many of whom earn less than 30,000 euro annually.
Taoiseach Enda Kenny is determined that the cuts to pay and conditions have to me made:
“Implementing these savings by agreement with public service staff would be another big step on the road to economic recovery, and would send out a signal to the world that the Irish people are determined to fix our economic problems and restore the country to prosperity and full employment.”
It is ‘Game On’ with division, public protest and strikes inevitable.