Ibec has today outlined a number of proposals to the Government appointed Commission on Public Service Pay and has called for greater analysis of the pay and pensions premium existing in public service pay.
The group that represents Irish business claims public service workers are currently getting "a good deal." Director of Industrial Relations at Ibec, Maeve McElwee says at a standstill, public service workers have an adjusted pay premium of around 7%.
In addition, she says their pay increase in 2017 at 3.7% is outstripping private sector pay by 1.5 percentage points.
The most recent (2009) estimates of the total accrued liability in respect of public service occupational pensions is €98 billion. Given changes in market conditions since then, it is quite possible that this has increased to over €130 billion. McElwee warns that within a generation, this will be unsustainable for the state.
She warns that in effect, the notional employer contribution to today’s public service pensions remains almost 14 percentage points higher than that of their private sector counterparts.
In her view, it is imperative that the PRD become a permanent contribution by public service workers toward their pensions and that this be held in a reserve by the state over time.
Director of Industrial Relations at Ibec, Maeve McElwee said, "Given these factors, Ibec is of the view that no public service pay acceleration should take place in excess of that which has already been agreed. In addition to enhanced job security, public service workers have an existing pay and pension’s premium and have seen significant pay increases under the existing agreement."
She added, "We agree that cuts to public pay should be unwound over time, but this cannot be completed in a short space of time. It must not undo the productivity and efficiencies gained under successive agreements. Rather, it should be phased over a number of years to avoid crowding out the private sector, undermining the public finances and depleting scarce resources for investment and service delivery."
Source: www.businessworld.ie
