Industry and Employment Correspondent
When negotiations opened for a successor to the Public Service Stability Agreement in recent weeks, it was inevitable that there would be demands for real pay increases beyond the restoration of cuts imposed during the austerity era, as well as the rolling back of unpopular measures imposed the crisis.
The Government, for its part, would inevitably need an affordable deal, particularly given the parlous state of the Exchequer finances due to Covid-19 and Brexit.
It wanted to copper-fasten reforms, particularly those fast-tracked to tackle the coronavirus challenge.
When fully implemented in 2023, it will add €900m a year to the public sector bill.