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Wednesday, Ireland's public service unions suspended the earlier announced Thursday's strike after reaching an agreement with the government on their pay. Today, the government agreed not to cut public sector pay in next week's budget.
Ireland's Prime Minister Brian Cowen is of the view that spending cuts are needed to stabilize the budget deficit at 12% of gross domestic product. The government had earlier proposed reductions in public sector pay.
"The Government has confirmed that they are satisfied that a temporary alternative to pay cuts can be achieved in 2010, based primarily on unpaid leave, Irish trade union IMPACT said on its web site. The government has said that the savings based on unpaid leave fall short of what is required and that this shortfall will need to be addressed. This will form the basis of the discussions over the next few days, as well as the issue of public service transformation in the longer term. On November 25, public services sector unions had threatened that they would hold a strike on December 3 if negotiations with the government fails. That was after staging a strike on November 24.
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