Written answers

Wednesday, 11 February 2015

Department of Public Expenditure and Reform

Public Sector Staff Remuneration

Photo of Paul MurphyPaul Murphy (Dublin South West, Socialist Party)
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22. To ask the Minister for Public Expenditure and Reform his views on pay rises in the public sector in view of the call by SIPTU, the Services, Industrial, Professional and Technical Union, for a 5% pay rise across the economy and a minimum wage of €11.45 (details supplied); and if he will report on contacts made with trade unions on the matter of pay. [5786/15]

Photo of Brendan HowlinBrendan Howlin (Wexford, Labour)
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As I have already said, in the event that the public service unions make a pay claim as they have indicated that they will, the Government will enter into discussions with them on successor arrangements to Haddington Road and the gradual wind down of the financial emergency (FEMPI) Acts. In this regard I have indicated that my preference is to have the first quarter Exchequer returns available to me before inviting the unions for talks, so that I would have the most up-to-date information on the public finances. The economy is recovering, in no small part due to the contribution of public servants to keeping the cost of the public service paybill at sustainable levels.   I expect that their representatives will be strongly pressing that contribution in the context of any discussions.  

In addition the structure of any pay review will have to take account, in the public service, of the need to address the financial emergency measures legislation in a phased way.  In that context therefore, suggestions of a generalised pay increase in gross wages over a certain period are less applicable then they might be for profitable private sector employers.

The Government is clear that any discussions on pay will take place in the context of the State's fiscal position and the pace of financial recovery for this year and 2016, as well as ensuring a sustainable fiscal position over the medium term.  

There are strong indications that reviews of pay levels will take place across a broad range of private sector employers across the wider economy this year which is a welcome sign of a normalising economy.  I also welcome the work of my colleague Minister of State Ged Nash in establishing the Low Pay Commission to review issues around low pay across the economy.

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