Talks on a new national pay deal took place at Government Buildings this afternoon. They have now been adjourned. Arriving for the talks, IBEC director general Turlough O'Sullivan said employers could not afford pay increases in excess of low single digit percentages.
He described the current rise in inflation as a blip largely due to current oil prices, saying most commentators expected inflation to revert to between 2.5% and 3%. He ruled out any element of local bargaining in a new deal and stressed the need for reform in the public service to cover value for money and pensions.
But ICTU general secretary David Begg said employers could well afford to pay generous increases, partciularly those making lots of profits. He said there was a strong case for local bargaining in profitable sectors.
Finance Minister Brian Cowen called on employers and unions to co-operate in seeking a new pay agreement. He said employers and unions could not just look to the government to broker a pay deal.
