Irish unions in national talks over new pay pact

A new national pay pact for Ireland is likely to be agreed in within the next few weeks. Unions, employers, the government and community groups are working on a deal to replace the Partnership 2000 agreement, which was signed at the end of 1996 and comes to an end in April this year.

That agreement, like the three broadly similar agreements which preceded it, limited pay increases in return for the government pursuing a range of union-supported economic and social policies.

The negotiations appeared on the brink of collapse last month when Ireland's largest union SIPTU, previously a strong supporter of national deals, pulled out of the talks. The walkout was prompted by the government's plans to give more generous tax allowances to the better off. It was only ended after the government made a set of specific promises that the living standards of the low paid would be improved in the future. Despite SIPTU's return to the talks there are a number of other unions including the AT&GWU general union, part of the UK T&G, and the shop workers' union Mandate, who remain strongly opposed.

Pay increases are not the only issue being discussed. The talks are also looking at a range of measures to improve childcare and will cover the implementation of a new national minimum wage in Ireland, planned for this April.