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Unions won’t lie down yet
07 February 2010
As the public sector trade unions enter the third week of low-grade disruption tomorrow, the government has signalled it wants to reopen talks on a programme of reform for the public service.
The government and the unions are acutely aware of the risk of an escalation with every week that passes. But, despite the best efforts of the Labour Relations Commission (LRC) to agree a framework for talks, the view on both sides is that the campaign will continue to run for some time.
‘‘This will get worse before it gets better," one government minister told The Sunday Business Post. ‘‘The unions believe they will have to show their muscle."
The campaign of non-cooperation with management - leaving phones unanswered and enforcing lunchtime closures - have caused irritation and inconvenience, but no major disruption. Unions will shortly have to decide whether officially to escalate the disruption or re-engage in talks with the government with no preconditions.
Most unions have acknowledged that the 2010 pay cuts will not be restored, and that the focus has shifted to 2011 negotiations on pay and reform.
A glimmer of hope was raised by the leaders of the two unions, Siptu and Impact, which represent the largest number of public sector workers.
Following the intervention of Kieran Mulvey, chief executive of the LRC, Jack O’Connor and Peter McLoone said they would return without preconditions, though O’Connor added that pay policy would have to form part of any negotiations.
But the Civil and Public Services Union (CPSU),which represents lower-paid civil servants, has continued to insist it wants the 2010 cuts reversed.
Blair Horan, its chief executive, told this newspaper that his union’s focus was on 2010 - and it could not afford to wait until after the 2011 budget for a reprieve.
Taoiseach Brian Cowen told the Dáil that ‘‘the reversing of budgetary decisions made two months ago is not an option’’. He wanted to pursue ‘‘an agreed agenda . . . as a means of ensuring we get better and winning outcomes for everybody in due course’’.
‘‘The dance is only beginning," a government source said. In an increasingly volatile climate, there was some question over the publication of an outline of a cabinet memo from Brian Lenihan, the Minister for Finance. It warned of suspensions if public sector employees strayed over the work-to-rule line.
One government minister said that details of the memo turned up the temperature, particularly as union chiefs were indicating a willingness to engage without preconditions. The government has its own political considerations in deciding the basis of any re-engagement with the unions, and political pragmatism is playing a role in its media messages.
A tough policy towards the unions has played well with Fianna Fáil backbenchers.
Some have attributed a 4 per cent rise in support for the main government party in last weekend’s Sunday Business Post/Red C poll to its tough policy on public sector pay. But the views of Fianna Fáil backbenchers can vacillate at the best of times. The deputies made a stand on proposals for unpaid leave in the public service in December, but rolled over last week on reductions to the cuts for a group of highly paid public servants.
The cabinet document outlined how the unions were accommodated through the collection of subscriptions, as well as the terms of the work to rule, but it was not intended that the government would act on suspensions, according to one government source.
The government has two problems: on the one hand, it is trying to reassure the electorate that it will not buckle to the unions on the 2010 budget. On the other hand, it is also leaving the door open to early talks on the 2011 budget, as well as major reforms and efficiencies.
Last weekend, a senior Finance source said that, while 2010 pay cuts would not be restored, the government might be willing to re-engage on a partial restoration of pay in 2011 or future years. ‘‘As long as the cost is held where it is, we could consider alternatives which could increase people’s pay," he said.
This weekend, a similar message came from a government minister.
‘‘It is becoming clear to a lot of trade unions that a re-engagement would be about 2011," he said.
‘‘Although some unions are going through the motions of insisting on reinstating 2010 pay cuts, most, I believe, realise that, if we get into discussions earlier, there is a possibility of discussing the programme of reforms and 2011 pay.
‘‘The unions are going to have to come up with similar measures that could be delivered and are verifiable, and whatever models they come up with have to be permanent. This agenda is very much about 2011 - because we’re not reinstating 2010 pay cuts."
The opposition is also homing in on the potential of next year’s budget as the basis for fresh talks. Fine Gael leader Enda Kenny last week urged the government to engage in negotiations, on condition that no further pay cuts were introduced in 2011,a s well as the prospect of a staged restoration of pay from next year in return for reforms.
As the industrial action continues to dominate the public mood, attempts will continue to remove the obstacles to restarting talks.
In the meantime, there is an ever-present danger of a rapid escalation sparked by a suspension or actions stepping over the line, particularly in the health sector.
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