Irish pay pact in crisis

The national Irish pay pact, the Programme for Prosperity and Fairness (PPF), is in crisis as a result of higher than expected inflation. The pact provides for a 5.5% pay increase in the first year but this has already been absorbed by price rises, which were running at 6.2% in August.

The unions have called for an additional 5% increase to make up for inflation, while the employers last month restated their position that the pay element of the PPF, which also covers broader economic and social issues could not be reopened. (For more details see Bargaining Report 209, October 2000.)