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Dublin: 10 °C Thursday 23 May, 2013

Howlin insists: If Unions keep Croke Park commitments, we’ll keep ours

The public expenditure minister tells the Dáil that lower-paid public servants will not have their increments cut.

THE PUBLIC EXPENDITURE minister Brendan Howlin has affirmed that the government does not plan to defer increments due to lower-paid public servants – potentially re-opening conflict between the government parties.

Taking Leaders’ Questions in the Dáil this morning, standing in for Eamon Gilmore, Howlin said previous Labour Court rulings had affirmed that increments – the annual pay increases given to public staff in lower wage brackets – were a core part of employees’ pay.

While Howlin said the government was keen to lessen its overall spending on the public payroll, it had sought to do so by introducing caps on the wages of higher-paid servants in the public and semi-state sectors.

“So long as Croke Park and the unions signed up to it deliver their side of the bargain, the government is committed to delivering its side,” the minister affirmed to Sinn Féin’s Mary Lou McDonald.

Howlin admitted that he was “anxious to negotiate and interact with the trade union movement – as I do all the time – to get the best value”.

The minister said he was a “strong supporter” of the deal and referred to recent reports showing that the deal had achieved savings of about €1.5 billion since its introduction two years ago.

Under the deal, the government commits not to enforce compulsory redundancies in the public sector, in exchange for commitments from staff on extra flexibility.

Disputes on savings

The prospect of increments being withheld arose at the weekend after transport minister Leo Varadkar pointed out that suspending increments could save in the region of €200 million a year.

“I certainly wouldn’t begrudge anyone their increment but its very hard to justify giving anyone a pay increase in the year ahead while we’re cutting services,” Varadkar had told Newstalk radio.

“That’s a big saving, and one that doesn’t hurt anyone because they’re not worse off.”

Varadkar’s figure has been questioned, however, with Labour chairman Colm Keaveney suggesting that the savings would actually be closer to €50 million.

McDonald had also taken issue with the “scandalous” €238,727 salary being paid to the new chief executive of the VHI, John O’Dwyer – which was yesterday reported to be in breach of the pay cap set by the government for semi-state staff.

Howlin said there were occasional situations where “to get people of the skills necessary to do some of the jobs we need to do”, the government needed to show “flexibility” in the wages being offered to chief executives.

The cabinet had previously indicated that only the chief executive of ESB would be permitted to earn more than €250,000 a year, while only the chief executives of RTÉ, An Post, CIE and the Dublin Airport Authority would be given wages of over €200,000.

Howlin has previously explained that the VHI wage was sanctioned following presentations by the Minister for Health, James Reilly, and this morning said he had not sanctioned any wage above the €250,000 upper ceiling laid out when the government took office.

Read: Public sector pay increments should be deferred, says Varadkar

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Comments (60 Comments)

  • Ah yes, the public v private debate. And the government, IBEC, the bankers, the IMF, the ECB all laughing at us while they pocket what we earn while we tear strips off one another. In my family, there are public servants and private workers (because there is no such thing as a public or private sector family). Here is a fact, only one has seen a pay rise. He works in the private sector. One of the public servants (a teacher) lost her job because of the rise in the pupil teacher ratio. The rest of us, public and private sector, have suffered pay cuts, loss of entitlements, loss of overtime, increased pension contributions etc…. Put this into context, the head of the VHI breaches the salary cap by 50k, Ministers refuse to take further pay cuts, Inda’s advisor breaches the salary cap in the public sector, banker’s (the people who caused this mess) pay worldwide increases by 12%. Who are the mugs? We are because we tear the head off one another while those who caused this mess line their pockets.

    Reply
    • Very well said Mark Neville, agree with you on that.
      The sooner we get a Government that actually cares about the people of this country and not their friends in Germany the better, Michael Noonan will not burn the Bondholders because he is one of them.
      Traitors to the Irish people every one of them.

      Reply
  • John O’Dwyer is starting at VHI at €50k over the salary cap.nLet’s hurt the little guys some more.n

    Reply
    • That job(VHI CEO) was always a reward position for political services rendered. The company is a sham insurance company, exploiting a bs health system and tearing the hole out of it. Where does the need for ‘person with High expertise’ come into it, ANYBODY can rise premiums willy-nilly if you are semistate ffs.

      Reply
  • blah! 28/06/12 #

    Mel you do your argument no favours with statements like “You public servants” and when a lot of the points you make are catch all generalisations, such as “your bloated salaries” and “gilt edged pension”. If, as I think was first brought to my attention on Vinbt, 70% of the public service earn less than 35k/year, there will be no gilt edge pension there, a very very small top up on the state contributory pension. Yea a lump sum, but the amount they will have paid towards their pension over 40 years will far exceed the return they get. Hardly gilt edged. And I don’t think anyone would call a salary up to 35K bloated.
    I’m sorry your business is not working out and you have to take a massive pay cut, the reality there is when you start or run your own business them is the risks. It could have gone the other way. From your tone, to me anyhow, you come across as you are looking for someone to blame for this and that is not the frame of mind to enter a debate in.
    I am a public servant, i did work in the private sector up until 2007 (made redundant), my drop in salary was from 55k/Y and bonuses to 24k/Y. I am lucky to have a job, which is somewhat safe (I hope!), even if I don’t have much of a life, or can’t afford the one I had. The Public Servants on this thread and many others who say “well you could have joined during the good times” and similar such statements are, to me, dead right. For years I laughed at my Civil Servant brother as I was collecting a bonus for I didn’t know what.
    There is a hell of a lot wrong with the Public Service, a lot of reform is needed. Some has happened. More will. Anger towards the Public Service and Ill informed arguments are not the answer.

    Reply
    • mel 28/06/12 #

      I c how u never addressed the fact that 80% of the education budget is pay
      Note : the average teachers pension pot would cost 1million euro in the private sector but let’s all continue living in Alice in wonderland and not address these issues

      Reply
    • blah! 28/06/12 #

      Apologies Mel, I had written my comment before seeing your’s regarding the education budget. I don’t have time at the moment to go through the Vote 26 2012 Revs to check the pay/non pay split, but I would imagine it is a large percentage pay. Most Voted expenditure is. I’m not familiar with the structure of that Vote, I don’t know what extra entitlements/allowances teachers get so I can’t and would not dare comment on where savings could be made. I don’t know how your figure of €1m for the average teachers pension pot was arrived at, so I can not comment on that either.
      And having never read Alice in Wonderland or seen any film version I can’t comment on your “let’s all continue living in Alice in wonderland” comment. But I do find the tone of it very derogatory and negative. It brings nothing to the debate.

      Reply
    • Very well said Blah! Mel…maybe quit while you’re…well, maybe just quit!! Yeah!?!

      Reply
    • @ Mel

      I have addressed the issue below regarding teachers’ pay as a % of DES budget. Comparing teachers’ pensions and the private sector is somewhat spurious. You are obliged to pay into a pension as a public servant. I have a statutory obligation to pay 15% of my salary into a pension fund which (a) Will be lost if the euro fails and (b) takes in more than it pays out. It used to be the case where a public service pension was the best thing since Brennan’s sliced their pan. However, a report was commissioned by the teachers’ unions and was carried out by an independent, private sector body. The findings were published in the Trident Report. You can read it for yourself if you like. Note page 2 in particular.

      http://www.tridentconsulting.ie/wp-content/uploads/2011/06/Trident-report.pdf

      Reply
  • There is media hype fueling this debate & Mel attacking Daisy is
    symptomatic of what is actually happening here.

    Mel also decided to pay a much reduced rate of social insurance which
    doesn’t cover unemployment – however he us knowingly disingenuous to
    Daisy whom I suspect is a public servant and from whose final pension
    is deducted the amount of old age pension which Mel receives
    irregardless of his own pension funds – which were tax-free to invest,
    a cost to the Govt (untaxed income) another item from which Daisy is
    debarred.

    If Mel wishes to attach unfairness on the system -perhaps bank pay
    (3% increase when the employer knew they were insolvent) bank pensions
    (66% of final pay & underwritten by Govt) and bank staff share
    dividends (nil at the moment, but will return (see Bloomberg this am)
    and which are taxed at 20% without incurring any social taxes.

    If Mel was serious, he would calculate that reducing bank pay by the
    same amount as the Public service (300,000 staff to get 2bn) would
    save(sic.) 500,000 million (approx 35,000 staff). which the Govt is
    underwriting in one way / another and which also was borrowed -in a
    five year accounting period 2.5 bn
    society needs some filter on rancor – lambasting the public sector
    for the economy is non productive and further public service pay cuts
    will produce more unemployed (world bank figures 20,000 for each
    billion of cuts)

    On that count perhaps Mel might consider that in addition to the
    40,000 unemployed the pay cuts generated there is a concomitant loss
    of spending.

    Consider the effects of 300,000 people and families not buying
    newspapers coffee, & lunch, daily and further losses on spending on
    replacement items such as TV’s, computers, house extensions etc.

    An observer in Canada

    Reply
    • mel 28/06/12 #

      If your in Canada tell me how much do public servants get paid there
      A lot less I can imagine ,asRegards the pension ,I couldn’t afford to contribute to my pension as I was using every penny for wages and stock and keeping the business going and trying to keep people employed
      Try running a business some time then come back to me!

      Reply
  • You have to laugh at Varadkar: ““That’s a big saving, and one that doesn’t hurt anyone because they’re not worse off.””. It’s going to take years of increments for lower paid pulic servants to get back to where they were prior to the 15% pay cut imposed.

    If leos so concerned about the €200 million saving, why doesn’t he call out his party for handing 5 times that to unguaranteed unsecured bondholders this week alone,

    Reply
  • Dave 28/06/12 #

    Pity howlin and his mob arent so quick to honour the commitments they made to the electorate!

    Reply
  • These Govt Clowns will keep the upper managent on their caviar pay…While making cutbacks & tax increases for the ordinary man/woman on the street. It seems we are the soft option, the Elite will have their pay, expenses, pensions, payoffs protected. While the Irish people take more & more Austerity.

    They are making Austerity a way of life here….It really is time for constituents to put pressure on the backbenchers.

    Reply
  • As a public servant I got my increment today, woohoo except my wages went down. yes that’s right, because I paid even more tax than last month. They giveth an increment and they taketh away with tax.

    Reply
  • Of course I’m alright Mel! I’ve a good permanent pensionable job! I’ve paid into my pension since I was 18. Sounds to me like you a bit of a begrudger because things turned sour for you.

    Reply
    • mel 28/06/12 #

      No im a realist,your the one who thinks that what you paid into your pension would come anyway near the real cost of providing that pension
      The fact that your in the same job for 18 years shows how insulated you are from the real world
      You should be glad you had a job for 18years but you still expect your big tax free lump sum when the state is broke
      You have job security that on itself should be enough but no it’s gimme more I’m entitled

      Reply
    • ‘The fact you’re in the same job for 18 years shows how insulated you are from the real world’ (???)
      Mel – it is possible that people actually like their jobs & want to stay in them!!! The fact it’s a secure civil service job doesn’t come into it!! The majority of Firemen, Guards & Nurses go into these roles because they want to save lives, serve the public & care for the sick!! Ur last comment has no merit!!

      Reply
  • @ Mel bloated salary ??How dare you blame the public sector for your bad luck and the fact that you have no pension for yourself, I’d have loved to see your pay cheque ten years ago!!!

    Reply
    • mel 28/06/12 #

      I’m not blaming the public sector I’m only stating the facts
      The tax take that supported your wages has collapsed and until you get real then we will continue to have services for the most vulnerable curtailled just to keep the criminal Croke Park deal going
      Fact 80% of the education budget goes on pay and pensions therefore all the cuts have to come from the other 20%
      But sure as long as your ok!

      Reply
    • @ Mel

      First of all, it’s not 80%. They were 2006 levels. There has been a drastic reduction in pay (15-20%) and numbers (3,300 since Sept 2008) in education. Secondly, even if it was 80%, it is 80% of the second lowest spend on education in the OECD. Thirdly, in any business/enterprise/organisation, labour is usually the biggest cost. I notice from your earlier post that you run a business, so you should know that. It’s all well and good to throw statistics around as if they’re sacrosanct pieces of information. Perhaps, in the interest of fairness, you could be kind enough to provide the full picture before casting aspersions upon people’s livelihoods.

      Reply
  • mel 28/06/12 #

    Nothing changes,the government won’t take on the public service,they really run this country
    The private sector will take all the pain again,let’s call increments what they are a PAY RISE ,simple
    I have taken a 40% pay cut,I’m self employed with no gilt edged pension and no entitlement to dole
    Great country isn’t it!

    Reply
    • You should have joined the Public service when you had the chance then, shouldn’t you. Unions protecting employment standards for low paid workers wouldn’t have any bearing on you not having a decent pension plan, but they’re an easy scapegoat, thanks to govt spin.

      Reply
    • Even though Mel got more thumbs down, he is spot on. Historically, the private sector of the jobs base is ALWAYS what works to fuel ANY economy ANYWHERE in the world. However, it seems that liberal governments consistently slash the private sector, punishing entrepeneurs, small businesses, and the middle class. Funny enough, the hardest workers always seem to be the least entitled, so they either suffer here, or they emigrate to Australia or Canada. Public-sector favoritism decimated Russia’s economy in the early 1900’s, it led to the USA’s first credit downgrade in history, and it’s sending a whole generation of Irish across the ocean to escape our historically-proven defunct economic policy!

      Reply
    • Everyone had their chance to join the civil service when the economy was doing well but many chose the private sector for the added perks and bonuses. I remember being slagged over the fact that I didn’t get a Christmas bonus and that I was a mug to work for the Govt. Now that the economy has gone tits up all the lower paid civil servants who were the butt of jokes when the economy was good are now being told how overpaid we are and how our money should be cut and that we should do more for less. nBit of a joke really, classic manipulation by the Govt and media to have the Public and Private sector at each others throat while our country is being sold out from beneath our feet by a Govt that does not represent the best interest of their people. Fine Gael and Labour are acting in their own best interest not ours.

      Reply
    • Dave 28/06/12 #

      Nobody is telling Low paid civil servents that they are paid too much! They are telling you that higher paid civil servants earn too much, and its costing YOU as well!

      Reply
    • Dave’s right – we can’t really cut the low-end public servants’ pay. We all know guards don’t make a mint. However, maybe we should establish a committee that compares politicians’ pay with the average cost of living. I think the figures would be sickening.

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    • Spot on Toby

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    • Gemima I wouldn’t put Gardai in with the lower paid public/civil service! Their standard pay is quite reasonable but there are enough unnecessary allowances to make a politician blush!

      Reply
    • Dave 28/06/12 #

      And they are worth every penny. Its time those who do real work in this country were rewarded rather than endless armies of officialdom.

      Reply
    • Dave I have no problem with Gardai collecting a decent wage I was merely pointing out that they’re not low paid! Also there is a myriad of allowances that I would like to see paired back! Why anyone deserves an allowance when they’re not working night shifts to make up for the fact that they’re not receiving their night premium seems bizarre to me!

      Reply
    • Dave 28/06/12 #

      Well, that’s fair enough I guess. Such allowances also entail added administration which is a further cost. I simply fail to see why low paid civil servants defend a system that’s also costing them. We’re ALL paying for largesse, and i’m guessing we’re all fed up of working just as hard to stand still and struggle. nnSo, lower paid civil servants – choose your allies carefully. Your present selection isnt serving you very well.

      Reply
    • When I was working in the private sector in IT I was earning €950/week before tax and now that I’m working in the public sector in the same job, I’m only earning €495/week before tax.
      I would consider myself to be low paid for my experience, but I’m happy that I have a job and fed up with people begrudging low paid workers in the public sector.
      We did NOT cause this mess, the bankers and politicians did and they are getting off scot free. Even our new overpaid government lied to get into government so they could insure a cosy retirement for themselves.
      Political greed will never end in this country.
      So please stop bashing the lower paid people in the public sector, we are not all earning massive pay packets.

      Reply
    • Ged that’s a huge difference in wages between the two, I would have imagine professional skills were rewarded better in civil service but I don’t understand the system at all! Also I’ve never seen anyone bash lower paid employees either public or private, the guys at the top and the system are what is out of whack!

      Reply
    • blah! 28/06/12 #

      @Ted, regardless of what you do, you are the grade you are and are paid accordingly. And by god do people in that position depend on their meagre increment!

      Reply
    • Hi Ted Carroll

      Alas you don’t get paid for your experience in the public sector, you only get paid on a grade basis, I know of people that work as clerical staff that get paid more than me, simply because of their grade and without increments I would be F**Ked

      Reply
    • blah! 28/06/12 #

      @Ged & Ted. That is a huge problem with the Civil Service wage structure. You have the 30 year service Clerical staff, who may do nothing more than filing getting paid more than a technical IT person. You can also have the 2 year service Clerical Officer, who has shown initiative and is working well beyond his or her grade for no extra reward and no hope of it for the foreseeable future. These are the people that a freeze on increments will really hurt. Not the guys at the top of the system, or even the people in the middle.

      Reply
  • mel 28/06/12 #

    To daisy chain if we all joined the public service then who would have created job’s in this economy?
    Such a stupid statement to make just shows your level of intelligence
    It was people like me who took a chance worked 60hr weeks and had people employed that are necessary for growth
    It’s people like you with your sense of entitlement that will drag this country down further

    Reply
    • Agreed , it embarrassing they would even post such a puerile reply , “well why didn’t you join when you had the chance “I’d expect it out of a 5 year old .

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    • Im a public sector worker and Im sick to death of this public sector bashing . I have 350 gone from my wages every 2 weeks for usc and pension levy .ive still to pay my pension tax prsi .i ve had it with the lies the government are throwing out about the p.s they are turning each employment group against each other.we could nt get people to join my job in the celtic years as they would lode money. The fact is I and my fellow workers are not spending cash and the private work force are the ones suffering as a result of this .LEAVE THE PUBLIC SECTOR ALONE …DONE YOU REALLY WANT A GARDA .FIREMAN, NURSE , TEACHER ETC WHO COULDN’T GIVE A SHIT ABOUT THEIR JOBS AND THIS IS ABOUT TO HAPPEN. 999 is unavailable at this time. Please call back

      Reply
    • Once again, red-thumb all you like – Learn from history or you are doomed to repeat it. In our state of affairs we need to fuel the private sector at all costs. It is the ONLY thing that will work. I don’t believe this because I want to – quite frankly, it’s a hard pill to swallow. I just can’t turn a blind eye to the mistakes other countries have made for centuries – I’d prefer to learn from their mistakes. By the way, all you red-thumbers, here’s a question for you: can you look through your history books and find a country that formulated a SUSTAINABLE public sector-based economy? I’m listening . . .

      Reply
    • It was people like you who didn’t want public service jobs when the country was living the high life in the private sector. As a public sector worker I can tell you no one wanted my job when times were good, now there’s a queue.

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    • How many times do you guys have to be told , if you are a middle or low earning public servant YOU should be demanding the croke park is torn up and replaced with an agreement that protect your incomes at level comparable to your European colleagues who do a similar job ,not protecting guys in county council et al making 80or 90 k or principal officers who are being protected as they are linked to TD,s. now what wrong with this ????

      Reply
    • Mel, surely by giving out about your 40% pay cut, you’re the one with the entitlement issues. Just cos you got a kick in the nuts due to private sector greed, don’t take it out on unions ensuring they protect their members. Without unions, we’d all be on a pittance with no job security… Which suits the likes of IBEC and SMEs who are already getting around employment legislation by getting Jobbridge interns to do full time jobs for a lot less than minimum wage at no actual cost to them.

      Reply
  • i work in the Private sector have since i am out of school, but we live in a society where everyone wants to be at each others throats except at the people who are really milking it, people in the public sector are entitled to there wages, because they work for it, they pay taxes just like the rest of us, USC, PRSI, levy after levy, no one would doubt that the public sector needs reform it does, but these are workers are tax payers like everyone else they contribute to the system, so what you would prefer them on the dole where they contribute nothing? (not that i am against someone who loses there job getting the dole) if someone’s business fails, that terrible and i feel for them, but don’t blame the public servants who have not caused your business to fail! we need to working together instead of being at each others throats

    Reply
  • mel 28/06/12 #

    To Michelle I can guarantee you I wasn’t living the high life as you state you obviously don’t understand how an economy works
    You public servants need a proper functioning private sector to generate the tax revenue that is needed to keep you and your likes in the comfort your used to
    It was a unsustainable tax base which provided your bloated salaries,that tax base has disappeared its just that ye can’t accept it

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  • The civil servants pay their paye prsi pensions etc with the money the private sector give them.

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  • SMcB 28/06/12 #

    Its an absolute nonsence that staff in the civil service are getting pay INCREMENTS!!! How about pay freezes??? The country is BANKRUPT!!! What part of that word do the unions not get???

    Reply
    • blah! 28/06/12 #

      The Public Service (not just Civil Service) are being paid increments because their salaries are incremental. It’s part of their core pay. Which is protected under the Croke Park Agreement. As long as CP is in place people need to get over that. When it is over or scrapped then come back to the increments. Maybe it is just madness that Public Service salaries are incremental?That the vast majority have to work over 10 years before coming near the average industrial wage. Maybe the whole Public Service pay structure needs to be revamped. I suggest all should take a look at the Revised Estimates for 2012 (on DPER website) and see where a lot of the non pay expenditure is going. A lot of madness there too.

      Reply
  • mel 28/06/12 #

    No I wouldn’t begrudge you rent allowance and I can’t understand why you would put words in my mouth but anyway
    Secondly to say that you pay for your pension simply isn’t true you malt a contribution a very small one when you consider the return you get for example to receive a pension of 30k a year would require a pension fund of 385000e ,there is no way that the typical public servant would have contributed that amount over their working life
    Also your lump sum where do you think that comes from,you didn’t make any contribution to that,we do ,as it comes from current expenditure or in Ireland’s case it’s BORROWED!
    I haven’t even mentioned the sick pay which is nearly twice as many days as the private sector or the fact that the majority of public servants only work a37hr week
    So please deal with the facts,it’s obvious that the Croke park deal is simply protecting one sector of our society at the expense of the majority

    Reply
  • mel 28/06/12 #

    Well Nuffsaid the fact that you are calling my argument rants is neither here nor there
    Buy you seriously can’t justify lump sum payments and ponzi scheme pensions in a bankrupt country can you or maybe you prefer services being cut
    It’s obvious to me that you u prefer the later

    Reply
  • mel 28/06/12 #

    Oh ok soNuffsaid I’ll quit just because you don’t like hearing a few facts
    Last I checked this was an open forum

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    • Mel I’m entitled to my pension because I work hard and I pay for it. I don’t intend justifying myself to you Mel. My husband is in the private sector and I’m well aware of what’s going on, he’s been made redundant twice and only for my job we’d be on the dole, and getting rent allowance – but I suppose you’d begrudge me that as well.

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    • Mel, I suggested you quit your rant ‘cus Blah! Was wiping the floor with your pathetic attempts at comebacks to his comments!! I know enough to know I’m not as well versed as Blah! on the issues being addressed but it’s painful watching you rant on here tonight!! But sure, whatever does it for you mate, keep at it!!

      Reply

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