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The Minister Public Expenditure & Reform, Michael McGrath TD, today (Tuesday) welcomed the decision of the Public Services Committee of the Irish Congress of Trade Unions to endorse the terms of the recently negotiated public service agreement Building Momentum 2021 to 2022.

Commenting, Minister McGrath said: “In a time of great uncertainty, I believe this Agreement offers stability for both public servants and the public who rely on the vital services they provide.  "It is clear that the public service has delivered for the people of Ireland in the most difficult of circumstances during the  COVID-19 pandemic. The Agreement acknowledges this contribution by providing affordable pay adjustments commencing later this year. Crucially, these pay adjustments are progressive with those on lower incomes receiving proportionally greater pay increases.

"The Agreement is fair, affordable and sustainable, and it recognises the economic challenges currently facing the country. Most importantly, the Agreement paves the way for certainty on pay and industrial relations over the next two challenging years. "This collective agreement moves the public service beyond the FEMPI era and provides a new basis for managing public pay and employment terms in a sustainable and balanced way. "I believe the Sectoral Bargaining element to the Agreement represents an innovative approach to dealing with outstanding issues surrounding pay and conditions in the public service. In addition, I welcome the setting up of an Independent Body to examine the Haddington Road Additional working hours for public servants.

"The Agreement also sets out a reform agenda that embeds the flexibility and innovation demonstrated during the COVID-19 crisis into enhanced public service delivery in the future.

"I look forward to the implementation of the measures in this Agreement and I am confident they will support the delivery of quality public services for all our people."

Notes for Editors

This is a 2 year Agreement and will cost €906m or the equivalent of under 4% of the 2021 public service pay bill spread over 3 Budget Years

There are 2 general round increases of €500 or 1%, whichever is greater on 1st October 2021 and 1st October 2022.

 A Sectoral Fund is being created equivalent to 1% of basic salaries with a payment date of 1st of February 2022The pay measures in the Agreement are weighted toward those on lower incomes. An independent body will be established to examine the additional hours worked by public servants under the Haddington Road Agreement. A fund of €150m is being established to cover any operational costs that will arise as a result of the recommendations during the lifetime of the Agreement. The Agreement builds on the momentum of reform and change exemplified by the public service during this public health emergency and allows for on-going co-operation with change and productivity improvements and industrial peace until 2022.

Contact:

Claire Godkin - Press Officer, Department of Public Expenditure and Reform - 085 806 3969