Dublin: The Irish Government’s proposed 10.5 per cent pay increase for public sector employees is expected to cost the Exchequer almost €5 billion over the duration of the agreement, with the salary increases alone accounting for approximately €4.58 billion.
Additional measures aimed at supporting lower-paid workers are expected to bring the overall cost close to €5 billion. The expenditure would be spread over the proposed contract period, which is expected to run for between two and a half and three years.
Minister for Public Expenditure Jack Chambers previously told the Dáil that every one per cent increase in public sector pay would cost approximately €437 million, including associated pension costs.
The unions had rejected the Government’s earlier offer of a 7.75 per cent increase over two and a half years. The previous public sector pay agreement, which expired at the end of June, provided for a 10.25 per cent increase over a similar period.
The government-appointed negotiating team, led by Kevin Foley, held discussions over the weekend and again on Monday in an effort to reach an agreement. If both sides reach a deal, the proposals will be referred to the Workplace Relations Commission for the next stage of the process.
However, union representatives have warned that the planned industrial action will remain in place until a formal agreement is announced. Deputy General Secretary Katie Morgan said there would be no change to the strike programme without official confirmation that a deal had been reached.
Unions seek higher increase for a three-year agreement
The duration of the proposed agreement remains a major concern for trade unions. Union representatives have indicated that they would seek a higher pay increase if the government insists on a three-year contract rather than a shorter arrangement.
They are also seeking greater clarity on the proposed non-pay benefits and the financial estimates underpinning the revised offer.
Taoiseach and Tánaiste urge unions to accept revised offer
Taoiseach Micheál Martin described the government’s proposal as fair, arguing that public spending must be managed carefully to ensure resources are available to recruit additional public servants, including teachers, nurses, special needs assistants and Gardaí.
Tánaiste Simon Harris has also urged trade unions to engage constructively with the government over the revised offer, describing the current negotiations as a critical opportunity for both sides to compromise and avoid a strike.
Harris said significant progress had been made in the government’s proposal and called on unions to ensure that the industrial action did not lead to further confrontation.
Asked whether the offer would be withdrawn if the strike went ahead, he declined to give a provocative response, reiterating his preference for an agreement through negotiations.
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