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Unread 15-12-2009, 10:13   #1
roamling
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Default [Article] Ministers back off in semi-state pay battle

http://www.independent.ie/national-n...e-1975096.html

Irish Independent, 15th Dec. 2009


Quote:
Ministers back off in semi-state pay battle
Mixed signals highlight 'faultlines' in the Cabinet


By Fionnan Sheahan Political Editor

Tuesday December 15 2009

THE Government yesterday backed off on demands for semi-state pay cuts after powerful unions threatened electricity and transport strikes.

Similar to the PR disaster surrounding the unpaid leave debacle a fortnight ago, senior figures sent out mixed messages on the Cabinet's approach to the pay of the 40,000 workers in state-owned companies.

A government source said the same "faultlines" between ministers, which were present during the failed pay talks, seemed to be being repeated.

The lack of a coherent strategy from the Government raised questions over whether the coalition had the desire to open up a fresh front with the powerful unions in the ESB and CIE group.

Given the disarray, it is not yet clear if the Cabinet will even formally discuss examining ways to reduce the commercial semi-state wage bill this morning.

But the coalition will be expected to agree a unified approach on the policy, to be adopted at the meeting today.

Thousands of public sector workers will protest outside the Dail tonight over their €1bn in pay cuts.

Dublin-based teachers, nurses, firemen and civil servants will voice their objections over salary cuts, while the TDs inside discuss the legislation to slash their wages by between 5pc and 15pc.

The 30 commercial semi-state companies include the ESB, Bord Gais, Iarnrod Eireann, Dublin Bus, An Post, VHI, the Irish Aviation Authority and Dublin Port.

Energy Minister Eamon Ryan said the Cabinet would consider the issue at its meeting today. His comments followed Finance Minister Brian Lenihan saying the Government would look at pay in this area.

But Transport Minister Noel Dempsey said ministers should not interfere directly in the pay and industrial relations of such companies.

He said the semi-state sector was not formally on the agenda and pay rates were ultimately a matter for the boards.

And Taoiseach Brian Cowen said the question was how to maintain and regain competitiveness in the economy.

"And that's a matter for each commercial semi-state company to deal with themselves as it is indeed in. . . other private sector companies, some of whom have had to make various arrangements to keep jobs, to keep businesses going which are presently viable but vulnerable.

"The same discipline and requirements affect the semi-state sector as well in that respect, but it's usually taken on a case-by-case basis as there are different requirements and different situations in different companies," he said.

Mr Dempsey said he didn't think the Government should be "trying to control every aspect of the economy".

Costs

"I think that's up to boards of the companies. We want to see costs, including labour costs, kept as low as possible, particularly where costs are being passed on to customers, to the general public," he said.

"That's the overall and overriding government policy.

"The semi-state sector, particularly the commercial semi-state sector, has to take that into account, but they have to run their own business. I don't think ministers should be interfering directly in industrial relations matters and pay matters within the commercial semi-states," he said.

Playing down any suggestion of a rift between ministers, another government source conceded there was definitely a question of emphasis between the expressed views of different ministers.

"Nobody wants to micromanage the semi-states. They can't and you mustn't. Nobody wants the ESB to go on strike and similarly Dublin Bus," the source said.

"But you can't suddenly take 5pc off a clerical officer in the civil service and leave everybody else alone."

Union leaders in the sector warned of the Government having a battle on its hands if it went after semi-state workers.

Technical, Engineering and Electrical Union general secretary Eamon Devoy said workers in the sector would stand together, and pointed to the vital services they covered.

"We are talking about energy supply here and transport here," he said.

"It would be a fundamental mistake for the Government to come out and do that. I think it would give rise to an unholy war. . . That means if they want to do something unilaterally, then it is up to the workers to do something unilaterally."

SIPTU members in CIE rejected calls for pay cuts in the company. SIPTU organiser Willie Noone said Mr Lenihan had suggested there should be pay cuts.

"I want to make it clear to the minister and his colleague Noel Dempsey, the Minister for Transport, that our members will not accept pay cuts at CIE and will absolutely resist any attempt to enforce them," Mr Noone said.

- Fionnan Sheahan Political Editor

Irish Independent

Last edited by roamling : 15-12-2009 at 10:22.
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Unread 15-12-2009, 11:36   #2
Mark Gleeson
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The semi states cannot have a pay cut imposed by government directly. For those loss making entities pay cuts come from the financial position.

However if the state were to take over the pension fund of a semi state then the pension levy would apply. Most of the universities have handed over their schemes to the government and thus staff pay pension levy and are subject to the pay cuts announced at budget time.

Given the ESB and Bord Gais are profitable no chance of a change there
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Unread 15-12-2009, 14:17   #3
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The Government can also reduce the subsidy, or decrease the maximum charge these companies can charge if they wanted to force the issue. Many ways to skin this particular cat.
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Unread 16-12-2009, 01:15   #4
dowlingm
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any chance taking over IE/CIE's pension fund would be classified as state aid?
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