Union Says No To Short, Sharp, Shock, Therapy

One of the state's leading unions has criticised attempts by banks to urge a 'short, sharp, shock' policy to reinvigorate the economy.

Speaking on RTÉ's Morning Ireland, Irish Congress of Trade Union (ICTU) President Jack O’Connor said “short, sharp, shock, therapy” favoured by the government and employer groups – which involves slashing spending in the short term - would do more damage than good.

Economic shock tactics are sometimes introduced during periods of sustained difficulty. However, the results from a market 'shock' can be unpredictable and difficult to manage.

Mr O'Connor's comments come after the government held talks with union leaders and employers last night.

The union leader said instead the wealthy should be contributing “substantially more” than they are at present, especially those earning over €100,000 and with "considerable reserves of wealth".

Also today, the Irish Congress of Trade Unions has condemned what they believe are "pressure tactics" by Ulster Bank, who they say have tried to impose new contracts and terms on their employees.

Congress General Secretary David Begg and Assistant General Secretary Peter Bunting criticised Ulster Bank for walking away from a mediation process and for failing to pursue an agreement with unions that represent staff: the IBOA and SIPTU.

General Secretary David Begg said: "Ulster Bank's behaviour is reprehensible and has no place in the modern industrial relations arena. The bank is seeking to impose new contracts on staff that would undermine existing terms and conditions. Indeed, the new terms would impact severely on staff pension entitlements, with younger members being hit hardest."

(DW/KMcA)