Comment: Getting a grip on pay awards
As noted in Tuesday’s Irish Examiner, one of Mr Whitaker’s principles was “don’t spend money you do not have”.
One can only wonder how Government squares that statement up to its apparent on-going largesse to its own employees.
It started off with a recommended increase to the gardaí after their threat to strike, which the Government duly accepted at a potential annual cost of €50m.
In recent days, the Government has indicated that it is on the verge of agreeing to bring forward payments of €1,000 to public sector employees under the Lansdowne Agreement.
Then we learned that Irish Water intends to pay bonuses to its employees and increase their salaries.
In the meantime, teacher unions and others, including private sector unions, are waiting in the wings or have already indicated that they intend seeking not only increased salaries for their employees but also increased staffing levels.
And why wouldn’t they? The Government has already rolled over.
One would think that we are a country that has plenty of money and a long-term sustainable guarantee of having that money for public sector employees.
The reality is much different.
Each year, we borrow several billions just to stand still. Corporation tax receipts are boosted by multinational companies that seek to regularise their worldwide tax issues.
The new sheriffs in town, including Trump, are working hard to have greater control over where those taxes are paid.
These tax revenues are not sustainable. Then there is the effect of Brexit which has increased uncertainty exponentially, particularly now that the British prime minister has taken a hard line.
Public sector pay rolls on year after year. A commitment made today goes on forever. Private sector unions and employees are only too well aware of the implications of pushing costs up.
It inevitably leads to competitive problems which lead to redundancies and closures. For the private sector, there is no ‘sugar daddy’ to pay more.
It seems clear that until we have a government that is not beholden to multiple vested interests groups, we will deliver for each and every powerful group to the detriment of the overall economy.
We need a new TK Whitaker.
