THE IRISH CONGRESS of Trade Unions (ICTU) has today ratified a pay deal that will see public service workers earn up to 10.25% more by the end of a two-and-a-half year period.

The agreement, which a “sizeable majority” of union members voted in favour of, is made up of pay increases totalling 9.25%, as well as a provision for a Local Bargaining mechanism equivalent to 1% of pay.

Minister for Public Expenditure Paschal Donohoe described it as a “balanced approach” to public service pay “that rewards the ongoing effort of public servants, while ensuring the responsible management of public finances”.

PSC chair and Fórsa general secretary Kevin Callinan said the agreement marks the end of an era of industrial relations conducted under the terms of the Financial Emergency Measures in the Public Interest (FEMPI) legislation, which was introduced during the financial crash in 2009.

“Unions had sought the full and final unwinding of the legislation in these negotiations to re-establish normal industrial relations,” he said.

Unions will not be able to lodge any ‘cost-increasing’ claims for improvements in pay or conditions during the lifetime of the agreement, which runs from January 2024 to June 2026.

However, the specific provisions for local bargaining will allow trade unions to negotiate up to an additional 3% of pay costs, inclusive of allowances, for particular grades, groups or categories of employee.

“In both respects,” said Callinan, “we’ve established a unique pay agreement, while ensuring the maximisation of benefits for public servants in the early phase, with 4.25% payable this year”.

The pay proposals are estimated to be worth up to 17.3% for lower paid workers. This is because each of the flat-rate elements of the pay deal are worth more to public servants earning below €50,000 per year. 

Minister Donohoe said the agreement is protects the interests of “both public servants and the taxpayer” and recognises the importance to “reward the hard work and dedication” of the public service.

“I look forward to working constructively with ICTU to progress the implementation of the various measures in this Agreement in support of the delivery of quality public services.”

Finance Minister Michael McGrath said the new agreement will bring necessary stability to the public sector.

He said: “In the world in which we live where there is so much uncertainty – having a stable public service where services can be provided on a day-to-day basis to the people who need them is of paramount importance.

“This will ensure industrial peace over the period ahead and allow the Government to work with the public service in introducing a whole variety of reforms in the delivery of public services.”