Brendan Howlin (Wexford, Labour) | Oireachtas source

I thank the Deputy for his question. Obviously, the commercial semi-state sector has taken no pay cuts except at chief executive level consequent to all the legislation that was passed. That has caused some commentary among public servants generally.

The Financial Emergency Measures in the Public Interest Act 2013 was enacted on 5 June 2013. The primary purpose is to implement the proposed pay reduction for public servants earning annual salaries of €65,000 or more, and the parallel reduction in public service pensions over €32,500. These provisions have come into force.

The Act also contains a number of contingency measures to permit pay bill savings to be secured. The individual or body, which may be a line Minister or public service body, having the power to determine terms and conditions of employment may exercise that power to reduce non-core rates of pay or to increase hours worked. However, under the legislation, unions and representative associations may conclude collective agreements with their public service employers. Where a union has signed up to a collective agreement - in this case, the Haddington Road agreement - it will avoid the need for the contingency measures in the legislation to be deployed. As the Deputy knows, the vast majority of public service unions have entered into a collective agreement with their public service employers. Obviously, there is no need for the legislation to be deployed in that regard.

One union, as the Deputy knows, has declined to enter the collective agreement negotiated for the public service. It is a matter for its members to decide whether they wish to conclude a collective agreement, and the matter is shortly to be put to ballot. The legislative position is that in the absence of a collective agreement being concluded for members of that association, the Minister for Education and Skills will have to take the necessary measures to meet the targeted payroll savings in 2013 and the following years.

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