The Government entered the talks on a new national programme with a number of key objectives in relation to public service pay. These included the need to tackle the issue of cross-sectoral relativities, to establish a greater link between pay and performance, and to advance the process of public service modernisation.
The public service pay agreement which was negotiated as part of the Programme for Prosperity and Fairness provides for the establishment of a public service benchmarking body to undertake a fundamental examination of the pay of public service employees vis-à-vis the private sector. It makes it clear that cross-sectoral relativities are incompatible with the operation of benchmarking, and that even within a given sector, traditional or historical relativities between groups will not prevent the benchmarking body from recommending what it considers are appropriate pay rates on the basis of existing circumstances.