The Minister for Public Expenditure Michael McGrath has urged public sector workers not to strike as trade unions consult their members on industrial action. 

When inflation in the economy began to surge early this spring, the Government and unions began to negotiate a new pay agreement for the public sector. Workers were offered an additional 2.5% pay rise this year and a further 2.5% next year as well. 

However, the offer was rejected by unions last month on the grounds it “fell far short” of the rate of inflation and now members of SIPTU are being consulted on the possibility of industrial action: 

“I don’t believe that industrial action is the way forward, negotiation is the only way of achieving an acceptable outcome here,” Minister McGrath told Newstalk Breakfast. 

“An outcome that is acceptable to the Government on the one hand but also the public service workers. 

“We, of course, recognise that living standards are under pressure for public sector workers as they are for people on fixed incomes and private sector workers as well. 

“The negotiations we held last month did not conclude successfully; the Government put what we regard as a good offer on the table.” 

'No alternative'

SIPTU’s Deputy General Secretary John King has claimed that with the Dáil currently in recess the Government “is not prepared to engage in meaningful discussions on the cost of living crisis.

“In these circumstances, we are now left with no alternative other than to ballot our members in order to protect their standard of living.”

2BHF2CR Inflation and piggy bank on seesaw

However, Minister McGrath said the Government was ready to return to the talks at any point: 

“And we stand prepared to re-enter negotiations and to be as flexible as we possibly can with the view to achieving a deal,” he continued.  

“And I’m sure the unions will reciprocate that and I do hope that those negotiations can recommence shortly because that is the best way of ultimately agreeing a package here that does seek to address the cost of living pressures affecting public sector workers. 

“But I have to make sure that whatever we agree is affordable - not just this year and next year but the year after that and the year after that.

“And it’s important that what we do here is sustainable, it is affordable and I recognise the Government has many calls on limited resources at this time as well.”

Main image: Minister for Public Expenditure and Reform Michael McGrath at a press conference in Government Buildings, Dublin in January 2022.