Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I thank Deputy Ryan for the question. Public service pay has been governed by a system of collective agreements since the Croke Park agreement was negotiated in 2010. These collective agreements have helped to ensure public pay is managed in a sustainable, affordable and orderly manner. These agreements have also enabled significant reform of public services and changes to work practices.

The value of public pay agreements to the Government and the taxpayer is ensuring pay costs are managed in a sustainable and orderly way and in a climate of industrial peace. By and large, public pay agreements have delivered on these objectives over the past 12 years.

The current public service agreement is Building Momentum. This agreement is weighted towards those at lower incomes, with headline increases of approximately 5% for the lowest paid public servants. These groups will also benefit more from other measures in the agreement, including the overtime rates and premia payment adjustments. The current agreement is a two-year agreement that is due to expire, as Deputy Ryan has said, at the end of 2022.

As Deputies will be aware, exploratory discussions have taken place between the parties to the agreement following the triggering of the review clause in Building Momentum by public service unions and associations due to the increasing cost of living. These discussions have now moved to a formal phase of discussions, which are being facilitated by the Workplace Relations Commissions.

As the Deputies will appreciate, while these discussions are ongoing it would not be appropriate for me to comment on the detail of those talks, which should remain confidential to the parties. However, inflation and cost of living issues are a feature of those discussions.

These are very challenging discussions given the impact high levels of inflation are having on living standards of workers but also because of the uncertainty in the global economic outlook. The aim in these talks will be to strike the right balance and seek to achieve a deal that is fair and affordable to taxpayers generally and public service employees.

An agreement on public service pay could play an important role in underpinning stability, minimising industrial unrest and supporting the continued delivery of reform and quality public services over the period ahead. However, any such agreement would need to reflect the broader economic context and the current fiscal position where significant challenges are emerging.

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