Strike would damage economy, warns Lenihan

Minister for Finance Brian Lenihan has said the Government will have to take decisions in the national interest, even if there is no agreement with the unions over public sector pay.

He said a strike by public sector unions, which could take place on 24 November pending the result of a ballot of members, would further damage the economy.

He described the decision to strike as 'serious news'.

He said the Government was engaged in intensive negotiations this week with the public sector unions to find a 'common national way forward' to deal with the current 'difficulties'.

But Minister Lenihan said that if common agreement could not be found, the Government would just have to take whatever decisions were required in the national interest.

He said the 'simple harsh reality' was that the Government did not have the resources to fund what the public sector unions expected.

Minister Lenihan said that if the unions chose to deny that reality and to continue to embark on industrial action, it would cause further damage to the economy and to the people of Ireland.

Union leaders and officials from the Department of Finance resumed talks this afternoon on public sector pay, which the Government intends to reduce by €1.3bn.

Last night, many public sector unions confirmed that strike action on the issue will go ahead next month pending an on-going ballot of members.

Following talks yesterday evening, Irish Nurses' Organisation General Secretary Liam Doran confirmed the strike action.

He said he was disappointed with the lack of recognition by the Government to the contributions of public sector workers.