Letter Warns Job Cuts Possible In Public Sector

A leaked letter from the general secretary of the Impact trade union has revealed that any public sector deal is likely to include job cuts.

In a private and confidential letter from Impact general secretary Peter McLoone industrial relations staff were warned that Government efforts to avoid public sector pay cuts were likely to involve significant reductions in the number of people employed in the public sector from 2011.

An excerpt from Mr McLoone's letter said: "In my judgment the alternative [to pay cuts] is likely to involve a significant reduction in public service numbers over the next three to four years, with the likelihood that some additional exceptional measures will also be needed in 2010 to deal with the budgetary crisis next year."

Mr McLoone explained what was happening in the ongoing talks between the Irish Congress Of Trade Unions' (ICTU) Public Services Committee and Employer Representative Bodies and said the talks would not deal with the issue of additional taxation.

In a ten point plan submitted to the Government last month, the ICTU had suggested that the top tax bracket should be levied at 56% in order to pull Ireland out of its immediate difficulties.

"In fact, in my view, further increases in existing tax rates in the December budget will simply not feature," Mr McLoone wrote.

The unions expect the Government will today set out its view of the size and scale of the public service at the end of the economic recovery period in 2013.

(DW/BMcC)