Pension paper secures Irish agreement

As foreseen in last month's Workplace Report, talks on a new national pay agreement in Ireland have been successfully concluded.

On the issue of pensions, which came close to wrecking the agreement, the government has agreed to publish a green paper "outlining the major policy choices and challenges" and taking account of the views of both employers and unions. Comprehensive proposals will be produced within 12 months.

The agreement also includes major steps to improve employers' compliance with their legal obligations. The number of labour inspectors is to be trebled, and employers breaking the law will face fines of up to €250,000 plus possible prison sentences - changes which David Begg, general secretary of the Irish Congress of Trade Unions (ICTU), said could "halt the 'race to the bottom' in employment standards".

The agreement, Towards 2016, provides for overall pay rises of 10% over 27 months, as expected, put into a 10-year framework which also covers economic and social developments.

Before the agreement can come into effect, it must be ratified at a special conference of the ICTU on 5 September.