The Minister for Public Expenditure and Reform has indicated that the Government will respond to the impact of cost of living increases on public service workers through the negotiation of a new public sector pay agreement, rather than through a review of the current agreement.
Michael McGrath was responding to calls by both the Congress of Trade Unions and SIPTU for a review clause in the current agreement to be invoked to respond to the pressure inflation was putting on public sector workers.
Mr McGrath did not dismiss those calls. He acknowledged that inflation was now "a pressure point" for many workers.
But, he said, there was an agreement in place currently and the work of negotiating a successor would only begin "in the months ahead".
"I acknowledge that the current pay agreement was negotiated in a very different environment, an environment of low inflation, and public sector workers - like all other workers in the country - are living with the daily reality of the level of inflation that is currently there," Minister McGrath said.
"We will reflect on what the unions said today and consider the issues carefully."
Earlier, unions called for the review clause of the public service pay agreement, 'Building Momentum', to be invoked due to the rising cost of living.
The chair of the Irish Congress of Trade Unions' Public Services Committee, Kevin Callinan, said sustained high inflation and strong public finances were grounds for a review of the agreement's pay terms.
Mr Callinan, who is also the General Secretary of Fórsa, the largest public services union, said it was clear that the cost of living was on an upward trajectory.
"There was no assumption of the high and sustained cost-of-living increases in play when the agreement was negotiated in late 2020," he said.
Under 'Building Momentum', public sector workers received a 1% pay rise in October 2021 and will receive a further 1% rise in October 2022.
SIPTU, the country's largest trade union, said the modest pay increases under the deal have been totally eroded by the current spike in inflation.
"The public service agreement provides for a review where it is evident that the assumptions underlying its terms and proposals have significantly altered," said John King, Deputy Secretary of SIPTU.
"The current rate of inflation at 5.6% and the dramatic price rises in fuel, electricity, food and accommodation, along with other living costs, certainly meet the threshold for the review clause to be invoked," he added.
Talks on a new public sector pay agreement are expected to begin in the coming months.
Unions and the government have indicated that the rising cost of living will form part of the negotiations.
Additional reporting Paschal Sheehy
