Irish National Pay Agreement 2008:An outline agreement on a new Irish National Pay deal has been finalised by the Government and social partners, proposing a 6 per cent pay rise over 21 months with a final 1/2 per cent rise for lower paid workers at the end of that period. There is to be a 3 month pay pause in the private sector and an 11 month pay pause in the public sector.

After overnight talks, the social partners have reached the basis for an agreement, but unions and employers remain cautious.

Taoiseach Brian Cowen said the Government supported the deal on the table, given the wider economic and social benefits of a national agreement. 

Employers' group IBEC is to put the draft deal to its members and that it could take several weeks to reach a final decision.

If the outline deal is agreed, workers would be awarded a 6 per cent pay rise over 21 months, in tranches of 3.5 per cent and 2.5 per cent, with a final 1/2 per cent at the end for the lower paid.

There would also be a three month pay pause in the private sector and an 11 month pay pause in the public sector.

Speaking at Government Buildings, Taoiseach Brian Cowen said a range of initiatives in the employment law area would be set up. These would include a process on the employment and rights of temporary agency workers by prohibiting their use in the case of official strikes or ballots.

There will also be a statutory prohibition on the victimisation of trade union members and inducements to encourage trade union members to leave their unions. The Taoiseach also says the agreement contains commitments on public service modernisation to reflect the OECD report on the sector earlier this year.

He said he had not given any specific promises about the Budget but had emphasised the difficult fiscal situation. Cowen said deferring difficult issues led to greater problems afterwards but that this deal would help to get the country back into a positive position when the economy recovered.

Provision would also be made for pensions under the EU's Transfer of Undertakings directive, where an employee is legally transferred from one employer to another.

Pension provisions are not currently covered by the directive.

In a statement, Cowen said:“A national pay agreement will give a sense of confidence and stability in the challenging period ahead. The negotiations were very lengthy and complex and the social partners made commendable efforts to enable the terms of a draft agreement to be identified.

"The terms of the agreement are supported by Government given the wider economic and social benefits of a national agreement."

IBEC Director General Turlough O’Sullivansaid: “It’s a matter now for the membership of all the organisations to consider the draft.”

“That’s what it is, it’s a draft. But it was the best the parties could do under the circumstances. There are pluses. It sends out a positive signal to the investment community at home and abroad and it keeps the process intact.

“Hopefully this draft agreement will give us some breathing space to confront the very serious difficulties that the economy is facing. The architecture of the agreement is capable of responding to whatever needs an organisation has in terms of their commercial and economic circumstances.”

O’Sullivan added: “The next step is for ourselves, employers and trade unions and government to consider the draft to consult widely and to take soundings from our members and to make a decision which could take several weeks that this is the right course of action for the country.”

Asked if the draft agreement was close to what he had hoped for, he said: "It gives us a pay pause which is necessary in terms of the public finances and which helps taxpayers there has been considerable commitment from the public service sector to drive the reform package.”

The following statement was released by the Government::

Social Partners reach a draft Agreement

The Government and Social Partners have reached a draft Agreement on a successor to the first module of Towards 2016. The terms of the draft Agreement are set out below.

The Taoiseach, Mr. Brian Cowen T.D, welcomed the conclusion of the draft Agreement. He commented: “A National Pay Agreement will give a sense of confidence and stability in the challenging period ahead. The negotiations were very lengthy and complex and the social partners made commendable efforts to enable the terms of a draft Agreement to be identified.

The terms of the Agreement are supported by Government given the wider economic and social benefits of a National Agreement”.

Date of Implementation and Duration

Except where otherwise agreed at local level this Agreement should come into force on the expiry of the first module of Towards 2016 in each individual employment or industry and shall last for 21 months.

PRIVATE SECTOR PAY TERMS

It is agreed by the parties that the following basic pay terms shall apply in the Private Sector:

A Pay Pause of 3 months from the expiry of the last phase of the first module under Towards 2016.

An increase of 3.5% for the next 6 months of the Agreement as it applies in each particular employment or industry; and

An increase of 2.5% for the next 12 months of the Agreement – except for those employees on an hourly basic rate of €11 per hour or less on commencement of the second phase where a 3% increase will apply.

PUBLIC SECTOR PAY TERMS

It is agreed by the parties that the following basic pay terms shall apply in the Public Sector:

A Pay Pause of 11 months from the expiry of the last phase of the first module under Towards 2016.

An increase of 3.5% for the next 9 months of the Agreement; and

An increase of 2.5% for the remainder of the Agreement – except for those earning up to and including €430.49 per week (€22,463 per annum) on commencement of the second phase where a 3% increase will apply.

The draft Agreement reached between the parties covers a range of initiatives including:

Setting up a process to develop a national framework on the employment and rights of temporary agency workers; while prohibiting their use in the case of official strikes or lock outs; Optional recourse to voluntary arbitration on change at enterprise level; Setting up a time-bound process in which the issue of employee representation and the appropriate legislative framework will be addressed; The introduction of a statutory prohibition on the victimisation of employees based on their membership or non-membership or activity on behalf of a trade union, and on incentivising non-membership of trade unions; Making provision for pensions under the Transfer of Undertakings Directive; and commitments in relation to public service modernisation, including responding to the OECD Report on the Public Service.

The terms of the draft Agreement will now be considered by the relevant councils and executives of the social partners with a view to ratification.

Current National Pay Agreement