Pay warning after talks breakdown

Employers and unions have warned of a return to local bargaining on pay following the breakdown of talks on a new social partnership agreement early this morning.

ICTU General Secretary David Begg said that unions would now have to lodge pay claims on a local bargaining basis for workers whose national agreements expire at the end of the month.

IBEC Director-General Turlough O'Sullivan said the talks broke down on the crucial issues of union recognition and compliance procedures.

Earlier, the Taoiseach said an intervention by him would be unhelpful.

Now that the partnership talks have broken down, there were claims and counterclaims as to why the parties failed to do a deal.

This morning, the union negotiators briefed the executive council of ICTU on the breakdown. David Begg said the real break point was pay - with employers seeking a 5% increase phased over 18 months with a pay pause.

The ICTU General Secretary said that that would be unacceptable as it would leave workers worse off than they are now.

However, employers insisted the talks collapsed over union recognition and compliance procedures.

IBEC's Turlough O'Sullivan said employers could not reopen what he called the 'pandora's box' of union recognition less than two years after new procedures were put in place.

He also accused unions of rejecting a system whereby disputes relating to any eventual agreement would be referred to the Labour Court for a binding recommendation.

Meanwhile, employers and unions are now preparing for a return to local bargaining.

Despite the negative omens, all the parties say they are still committed to the concept of social partnership.