The Irish Times view on the the public sector pay agreement: focus now on improving services

Public sector unions made the correct decision in deciding to accept the new pay deal, which was formally ratified yon Monday. The 10.25 per cent increase on offer to public servants over 2½ years should be ahead of inflation and lower-paid employees will get more. The deal is also front-loaded, offering significant increases this year to households under pressure after the cost-of-living crisis.

The deal appears a reasonable compromise between what the public sector unions were seeking and the original offer put forward by Minister for Public Expenditure Paschal Donohoe. The talks, concluded in January, featured the apparently inevitable comings and goings, including threats of industrial action.

Common sense prevailed and a deal was done, offering some stability for the next 2½ years and pay terms roughly in line with what might be expected on average in the private sector. The agreement should help to attract new staff, which has been challenging due to labour shortages across the economy, although lower pay on offer for new entrants remains a barrier.

Now both sides have to work the new agreement. With significant extra spending also set to go on increasing staff numbers – as well as paying existing staff more – it is essential that services to the public in key areas such as health and education continue to improve. The agreement includes a commitment to cooperate with ongoing reform plans – and unions can negotiate additional increases at local level.

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It is essential that the transformation agenda is accelerated and additional increases available as part of the deal are not granted by right, but are part of a genuine negotiation with a focus on improving services. Guidelines for this local bargaining aspect of the deal, due to be agreed by this summer, will be important. Public servants have shown commendable flexibility in recent years, notably through the pandemic. But with the public sector pay bill up 50 per cent since 2016 – and with more now to come – there is an onus on both management and staff to deliver for the public.