Irish start talks on new pact

This month negotiations start in earnest on a new national pay deal in Ireland to replace the current three-year Programme for Partnership and Fairness, which runs out at the end of this year. Both the Irish Congress of Trade Unions and the Irish Business and Employers' Confederation have agreed to talks but their starting positions are very different.

While the unions are calling for pay increases above the current level of inflation the employers are suggesting that a pay freeze may be necessary if they are to agree to a deal. The employers are also looking for a mechanism to ensure that the pay terms of the agreement are complied with and that there should be a way of allowing companies in financial difficulty to pay less. On the union side, as well as pay, the demands include improvements in social areas such healthcare, housing and childcare.

When the Programme for Partnership and Progress was agreed the government was able to offer tax reductions to boost take-home pay but this seems less likely this time.