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Dáil Éireann debate -
Wednesday, 2 Jun 1993

Vol. 431 No. 7

Adjournment Debate. - Public Service Threatened Industrial Action.

Thank you, Sir, for having given me the opportunity to raise this important issue. Earlier this week, the two major public service unions issued strike notice on the Government to expire later this month. Everybody will be aware that Dublin is suffering from a lengthy transport dispute. Now this new and greater threat to our public services is gathering momentum. The CPSU and IMPACT will begin their joint industrial action with a one-day strike on 28 June which they propose to escalate over the following weeks into full-scale strike action, if necessary. Almost every public service, including Government Departments, employment exchanges, the courts, the Dáil, health services and air traffic control would be affected.

This is an appalling prospect. The reason I raise it is to ask the Minister of State to say what is being done to avert this strike. Clearly it would be a disaster if it were allowed to come to that. It occurs at a time when relations with the public service unions have been very badly soured by the imposition of the 1 per cent employment levy and the welfare cuts which have not been reversed in full, as the unions had been led to expect by the incoming Government, particularly by the Labour Party element in that Government. That souring of the atmosphere is a critical element in this dispute.

Apart from the developments to which I have referred there seem to be two major issues to be negotiated. One is the failure to appoint an arbitrator. I am aware that all Governments, for quite some time past, have experienced difficulty with the arbitration system, its knock-on effects and the relativity awards arising therefrom. Running away from a problem will not solve it. Failure to fill such an important position leaves an industrial relations gap. It should be dealt with head-on, in discussion, if the Government has a difficulty about this appointment. The unions have a difficulty in relation to the honouring of what they see as commitments in the programme in relation to pay.

I should like the Minister to inform the House what efforts are being made to resolve these issues. Not only will industrial peace for the foreseeable weeks and months be put in question, but the whole process of national agreements, of which I am an enthusiastic supporter, will come into question. In addition to disappointments in relation to the budget, if the last months of this agreement are marked by industrial relations problems of this kind it bodes ill for the prospect of any new agreement. It is my belief that the next will be one of the most critical agreements for this country within the context of achieving a serious national effort on employment, which will require the active co-operation of the unions, and some sacrifices. It may be an agreement such as we have never seen before, with fewer conceessions in the pay area, more reforms in social welfare and perhaps more concentration on the creation of extra employment in the public service. It will be crticial to the future of this country to have such an agreement in place.

In addition to the likely disastrous impact of an industrial dispute in terms of loss of public services it will be extremely difficult to retrieve relations with the unions to such an extent that they would be enthusiastic about or willing to enter into a further agreement.

I hope the Minister of State will be able to reassure us that serious efforts are being made to resolve issues which have such threatening consequences for our people by the total withdrawal of many of the public services on which so many people depend.

I am aware — from newspaper reports — that two major trade unions in the public service are in the process of arranging a campaign of industrial action at the end of this month. If, or when, formal notice of strike action is received, together with the precise reasons therefor, I will be in a better position to deal with the issues raised by Deputy Flaherty.

I understand — from newspaper reports again — that the two unions concerned have voiced public doubts and apprehension about the intentions of the Government in relation to commitments to public servants under the pay agreement associated with the Programme for Economic and Social Progress. Their planned action purports to be in defence of the Programme for Economic and Social Progress. If that is the case, I am sure the House will agree that these doubts are unfounded. Let me explain. On 17 January last year, the Minister for Finance set out clearly — on behalf of the Government — a package of measures in relation to outstanding commitments to pay increases due to public servants under the Programme for National Recovery and the Programme for Economic and Social Progress. Acceptance of that package had the desired effect of restoring normal relations with the Irish Congress of Trade Unions in the spirit of consensus which has served the country so well for the past five years or so.

Is the Minister of State referring to 1992?

Yes, last year.

To date, all pay commitments which have matured under the package have been honoured in full. The first and second phase increases of 4 per cent and 3 per cent under the pay agreement which forms part of the Programme for Economic and Social Progress have been included in the rates of pay of all public servants. In addition, the third phase increase of 3.75 per cent has been paid subject to a minimum payment of £5.75 per week and, as announced on 17 January last year, a maximum payment of £6.50 per week. All outstanding phases of special pay increases due to public servants under the Programme for National Recovery have been paid in full.

Meeting all these increases in full, together with the implementation of highly-important programme improvements in the health and education sectors has not been achieved without considerable cost. The effect over the past two years was to increase the total cost of public service pay and pensions by 19 per cent to £4,038 million — as set out in the Revised Estimates Volume. In 1994, the cost of increments and full implementation of the commitments to restore the 3.75 per cent increase next December and to payment of arrears due to capping of the round increases in 1992 and 1993 would add a total of £216 million, or 5 per cent, to next year's pay bill.

As announced by the Minister for Finance in his Budget Statement, the scale of this expenditure and its increase continue to be matters of considerable concern to the Government. Having provided in full for all pay increases due, the Government was convinced it could not ask taxpayers to carry any further additional pay costs in 1993 or to live with a situation in which liabilities to further increases would be allowed to build up for 1994, pre-empting decisions on resources next year.

Recognising that this position has implications for the operation of industrial relations across the public service, the Minister for Finance invited the Irish Congress of Trade Unions to discussions on these issues. If the consensus approach to managing our affairs means anything, it must mean that the parties can sit down and discuss any problems frankly and try to find solutions, in the true spirit of consensus, which will be fair and equitable to all the parties concerned, including taxpayers.

The Government is totally committed also to negotiation of desirable changes in the public service pay determination systems. Our aim is to reach an agreement as soon as possible this year, through negotiations with public service trade unions on a new system. Any new system will have to be more transparent and operate on assessment criteria which, while being fair to staff, would also be responsive to the particular needs of the Government of the day and the community as taxpayers. Clearly, to be successful, it will also have to command the faith and trust of both management and staff. The Government is also committed to working towards arrangements whereby public servants will be put on the same footing as other employees in relation to PRSI.

This process of consultation with the Irish Congress of Trade Unions has not yet been concluded. I would expect that the questions raised by the Deputy in relation to the appointment of a public service arbitrator and payment of the arrears due to capping of the general round increases in 1992 and 1993 will also be resolved amicably in the course of these discussions. I am confident that with goodwill on both sides it will be possible to reach a suitable accommodation which will not alone solve any current difficulties but will also lay the foundations for another consensus-based programme to follow the Programme for Economic and Social Progress.

To summarise, therefore, the Government has to date honoured all commitments to public service pay increases which have matured to date. We hope we will be in a position shortly to conclude our dialogue with the Irish Congress of Trade Unions on the issues raised in the budget speech in a manner which satisfactorily addresses the concerns of both sides.

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