Statement by the Minister for Public Expenditure and Reform, Brendan Howlin T.D, on the outcome of discussions between the Government and the Public Service Unions
Issued 29 May 2015
I welcome the agreement that has been arrived at today, 29 May 2015, and would like to thank everybody who has been involved in the process.
I believe that it strikes the right balance between the legitimate aspirations of public servants for pay recovery and sustaining our improving public finances.
It will secure a peaceful industrial relations environment until September 2018.
It reinforces the ongoing commitment of public servants to the wider reform agenda in the public service.
It begins the process of unwinding the financial emergency measures in a prudent and sustainable fashion thereby reducing the risk to the sustainability of the public finances.
It targets the bulk of available discretionary resources at lower and middle income public servants.
It meets the existing commitments made under the Haddington Road Agreement (HRA).
It is only made possible by the improvement in our economy delivered by this Government and the public service reform which has been delivered by public servants in recent years.
Separate from this Agreement with the Public Sector Unions, it is my intention to fulfil my commitment to begin the orderly restoration of public sector pension reductions made in recent years.
Note to Editors:
Cost of the Agreement
As set out in the Formal Text, this agreement covers the period to September 2018. The agreement has additional costs of €566 million over a 3 year period as set out below.
The costs of the commitments already made by Government in the Public Service Stability Agreement (the Haddington Road Agreement) are €278 million.
Supervision and Substitution
HRA Pay Restoration
Already Committed Cost from HRA
Cost of New Agreement
Impacts on Income Groups of this Agreement
The effect on various income groups of this Agreement are set below.
Cumulative Effect 2016 – 2018
Department of Public Expenditure and Reform
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