Government pay policy for 1983
The Taoiseach said pay must remain moderate to preserve international competitiveness and employment, while public-sector pay was still under review; discussions with employer and union bodies produced no proposals or outcome. He rejected claims that wage restraint would reduce employment, arguing that uncompetitive costs would cost jobs, while acknowledging inflation’s tax effects must be considered.
asked the Taoiseach the Government's pay policy in respect of the public and private sector for 1983; if the subject was discussed with the trade union and employer bodies at recent meetings; and, if so, the outcome.
Comment on this
The Government consider that the level of money incomes in 1983 must have realistic regard to the need to ensure the international competitiveness on which employment depends. The Government, as an employer, are faced with particularly severe constraints on pay in view of the state of the public finances and, therefore, realistic pay developments are a major requirement in the Government's budgetary considerations.
Pay policy was not discussed at the meeting with the Executive Council of the Irish Congress of Trade Unions on 20 January. In the meeting with national officers of the Federated Union of Employers on 24 January, I indicated that the Government, as an employer, would have to consider pay policy in the light of all budgetary factors.
The Government would envisage, after the budget, seeking to arrange further consultations with the trade unions and employers on the outlook for the economy and employment, including pay developments.