Union boss admits pay cuts needed to avoid job losses

Union boss admits pay cuts needed to avoid job losses

Tuesday, November 03, 2009 - 07:22 AM

The head of the Impact trade union is warning that a deal with the Government to avoid pay cuts will result in public sector job losses in the next few years.

Details of a private and confidential letter from Peter McLoone to officials in the union have emerged in today's Irish Times.

In it, he expresses his opinion that the alternative to pay cuts is likely to be a 'significant reduction in public service numbers' over the next three to four years.

Talks between department of finance and union officials resume today, with unions proposing tax increases as an alternative to pay cuts - however today Mr McLoone is quoted as saying he believes increases "will simply not feature" in December's budget.

Meanwhile, general secretary of ICTU David Begg said four elements in this issue need to be balanced carefully.

"We have expenditure cuts, we have tax-raising capabilities, we have borrowing and we have time" he said.

"The key challenge is to try to arrange them or to calibrate them in the right matrix so that over a period of time, we can manage this adjustment in a way that does least damage to the economy and still preserves the social fabric of society."