Irish Govt. Rejects Trade Unions' Proposal To Achieve Savings Through Unpaid Leave

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Talks between the Irish government and trade unions on cutting public sector spending have collapsed, reports said Friday, paving the way for inevitable public strikes.

The government has rejected a union proposal to allow public servants to take unpaid leave next year instead of a pay cut in the budget. It follows reports that both the parties were close to reach an agreement on an overall change in the public sector, including a pay cut of EUR 1.3 billion. Wednesday, the country's public service unions suspended the earlier announced Thursday's strike on expectations that the government will accept their offer.

Ireland's Prime Minister Brian Cowen is of the view that spending cuts and tax rises worth EUR 4 billion are needed to stabilize the budget deficit at 12% of gross domestic product. Ireland's budget presentation is due on December 9. The government plans to make a pay cut of EUR 1.3 billion from the 250, 000 public sector employees.

Cowen said Friday that unfortunately the proposals put to government do not provide an acceptable alternative to pay cuts. ICTU Public Services Committee chairperson Peter McLoone said the government had abandoned a revolutionary approach to public service reform in favor of conflict. "We are now going to see conflict instead of co-operation with change," he added.

Talks between the Irish government and trade unions on cutting public sector spending have collapsed, reports said Friday, paving the way for inevitable public strikes. (Market News Provided by RTTNews)