Dáil Éireann Debate, Wednesday - 19 October 2022
78. Deputy Paul Murphy asked the Minister for Public Expenditure and Reform if his attention has been drawn to the staff retention issues in several areas including health and education, particularly in Dublin, due to the cost-of-living and housing crisis; the actions that the Government are taking to tackle this issue; and if they are considering an allowance similar to the London weighting allowance (details supplied). [52107/22]
Amharc ar fhreagraStaff numbers in the public service have continued to grow over the last number of years. Between end-2015 and Q2 2022 overall serving numbers in full-time equivalent terms (FTE) increased from about 302,000 to 370,000, an increase of 68,000 FTE or approximately 20%.
Pay in the public service has been governed by a system of collective agreements since the Croke Park Agreement was negotiated in 2010. These collective agreements have helped to ensure that public pay is managed in a sustainable way while enabling reform of public services and changes to work practices.
The current public service agreement is ‘Building Momentum – A New Public Service Agreement 2021 – 2022’ which was due to expire at the end of 2022. As the Deputy will be aware, discussions took place earlier this year between the parties to the Agreement following the triggering of the review clause in Building Momentum by public service unions and associations due to recent increases in the cost of living.
These were challenging discussions given the levels of inflation that have emerged and the considerable uncertainty in the global economic outlook. The Government’s aim in these talks was to achieve a deal that is fair and affordable to both taxpayers generally and public service employees.
The outcome of these discussions was a set of proposals put forward by the Workplace Relations Commission to extend Building Momentum for a period of 12 months to the end of 2023. Three additional pay adjustments totalling 6.5% are provided for under the extension to Building Momentum over 2022 and 2023. These are:
- An increase in annualised basic salaries for public servants of 3% backdated to 2 February 2022.
- An increase in annualised basic salaries for public servants of 2% on 1 March 2023.
- An increase in annualised basic salaries for public servants of 1.5% or €750, whichever is greater, on 1 October 2023.
These proposals have now been ratified by ICTU, the PNA and AGSI.
The cost of these pay adjustments under the extension to Building Momentum is estimated to be €1.6 billion spread over three calendar years - 2022, 2023, and 2024.
This extension makes Building Momentum a three year pay deal. The extension acknowledges the higher than anticipated rates of inflation that have emerged since 2021 and in particular the impact of cost of living pressures. This is the approach being taking in relation to public service pay, rather than consideration of location specific allowances.
The existing Building Momentum Agreement provided headline benefits of 3%. In total, including the existing Agreement and the proposed extension, headline benefits over the lifetime of Building Momentum would amount to 9.5%.
In respect of public servants at lower pay levels, Building Momentum as extended provides for increases of 12.5% over its lifetime.
