Draft Agreement will award affordable pay increases, make pension provision more sustainable and secure industrial peace

Minister for Public Expenditure and Reform, Paschal Donohoe TD, has this morning (Tuesday, 13th June 2017), obtained Government approval for the proposed terms of an Agreement reached at the Workplace Relations Commission (WRC), between public service unions and public service management officials representing the Government, on an extension to the Lansdowne Road Agreement, the Public Service Stability Agreement 2018-2020. The terms of the proposed Agreement, which will cost €887m over three years, will run until December 2020. A full breakdown of resulting salary benefits is available here, and FAQs are available here.

In welcoming the approval of Government, Minister Donohoe noted that the terms of the proposed Agreement were the outcome of a difficult, complex and protracted negotiation process, facilitated by the Workplace Relations Commission and that the Commission had commended the proposals to the parties to that negotiation process.

Minister Donohoe said: “The Agreement aims to award pay increases for public service staff across the coming years in line with what is affordable to the State, put pension provision on a more sustainable footing and secure industrial peace so that our public service remains a rewarding place for those who work in it and continues to deliver for those who depend on it. In that regard, the terms of the proposals represent a package of measures that is balanced, fair and affordable, and represents a significant milestone in the unwinding of the emergency legislation (FEMPI) which was introduced during the crises years.”

The proposals will also provide significant support to the sustainability of the public service pension system to ensure it continues to deliver for those public servants currently in employment and those who have retired from the public service.

The Minister further pointed out that: ‘The Agreement provides a series of pay increases which will unwind FEMPI pay reductions for 90% of public servants.  It also provides for significant further income gains for new entrants recruited after January 2013 who will benefit from much reduced rates under the proposed new Additional Superannuation Contribution (ASC) compared to their pre-2013 peers’.

“There is a lot in this deal for those that sign up to it and my hope is that those engaging in ballots over the coming weeks will take the time to consider everything that is contained in the draft Agreement.  In addition to providing for a series of increases in pay, for example, there are also provisions and clear commitments to take forward other issues of concern to public servants under the framework of the new Agreement, including on issues such as recruitment and retention and new entrants.”

ENDS