Paschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

The public service Exchequer pay bill is estimated to be almost €24 billion in 2023, which accounts for almost one third of current expenditure for the year. Details of departmental allocations are set out in the 2023 Revised Estimates Volume. Departments are required to meet pay costs from within these approved allocations. Pay in the public service has been governed by a system of collective agreements since the Croke Park agreement of 2010. These agreements have helped to ensure that public pay is managed in a sustainable way while enabling reform of public services and changes to work practices. As the Deputy is aware, discussions took place with public service unions and associations last year following the triggering of the review clause in Building Momentum by public service unions and associations due to the increased cost of living. The outcome of these discussions was a set of proposals put forward by the Workplace Relations Commission, WRC, to extend Building Momentum for a period of 12 months to the end of the year. The cost of these pay adjustments under the extension is €1.6 billion over 2022, 2023 and 2024.

The original agreement also provided for a sectoral bargaining fund to be established. This was equivalent to a 1% increase in annualised basic salaries and was made available to be used as a sectoral bargaining fund. However, section 5.6.2 of the agreement provides that there will be no cost-increasing claims for improvements in pay or conditions of employment by unions, Garda and Defence Forces associations or employees during the agreement. Sectoral pay claims are a matter for the relevant Department in the first place. There are established industrial relations mechanisms in the public service where pay claims can be processed. The WRC and related institutions provide advice and assistance on industrial relations matters in the workplace to employers, employees and their representatives.

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