Let’s accept a smaller slice of a shrinking cake. The Irish Congress of Trade Unions and Irish public sector unions in crisis

Abstract

At the time of writing, Irish unions are balloting their members about a new collective bargaining agreement for the public sector (Labour Relations Commission 2013). If a majority of union members in a majority of public sector unions within the Irish Congress of Trade Union (ICTU) endorses the proposed “Croke Park 2” agreement, it will come into force on the 1st July 2013. As a result, the public sector wage bill will be cut by another 7% with union approval, although public sector workers have already suffered a reduction in their earnings to the order of 25% since 2009. This development raises two questions: First, why is there a sudden need for an additional one billion euro cut in Irish public sector pay? Second, why are the leaders of Ireland’s biggest public sector unions, i.e. SIPTU and IMPACT, campaigning for a yes vote despite the pay cuts that the proposed deal entails?