5% Public Sector pay cut part of €3BN of New Year cutbacks

The government is to respond to an anticipated €5billion deterioration in the public finances in 2009 from the budget estimates by cutting public sector pay by 5% which will save €1billion and the remaining €4billion will be divided between an extra €2billion in spending cuts and a further €2billion in borrowing.
timesonline.co.uk/tol/news/w … 375811.ece

Isn’t there a no glee policy on this site?

If true, this is terrible news for many people. This could really finish the country off through prolonged strikes.

There is indeed a no glee policy on the site. There is to be no glee about the public sector employees getting a pay cut.

Just like everyone else, a drop in pay could hurt public sector employees just as it could hurt private sector employees.

So… No Glee.

Actually I think the strikes would be a positive.

Save pay and the country would somehow manage to function, just like it did in the war dearie.

Are you sure about that? Can the country manage without medicine, electricity, transport, teaching, dole offices etc etc

Anyway, that’s a separate matter. Public servants have the same mortgages and families as those in the private sector. This is terrible news and if it’s true this is a very cowardly way for it to be communicated. Pathetic actually.

Hopefully we’ll all work together in a rational way to see our country out of this mess.

One word : DEFLATION!!!

I’d make it a 10% cut for anyone on over €120k. Nobody on €120k couldn’t make do with €108k. That seems pretty painless to me in the grand scheme of things, and that’s a hell of a lot of money whatever your high-powered position.

It doesn’t say that isn’t going to happen, just that the overall pay bill is going to come down by 5% (or that’s what’s being sought, anyway).

Very true if that translates into less extortion when you need an electrician, need your car serviced, windows cleaned, hair cut, a pint of beer etc etc

The next thing is a private sector request for a 5% pay cut. I wonder how many of the contributors would agree to that?

National emergency?

It would be an interesting point of discussion. If the question was framed in the correct way and it was observed would it not make the country instantly more competitive in these unprecedented times?

Maybe a good ol’ 1970s style strike would be a useful learning experience for the public servants themselves.

In more recent times they’ve become masters of the non-strike strike. Witness the blue flu’, nurses refusing to answer phones, teachers refusing to supervise playgrounds. Labour is effectively withdrawn but in such a way as to involve no sarcrifice of salary. The government generally caves quickly, while the strikers risk nothing. I can’t see such chicanery working in the current climate though.

Now an all-out, man the picket lines, warm-your-hands-on-the-fire-in-an-old-oil-drum type of deal would I reckon give a salutary lesson at least to the younger set, and have them running in droves from the crazy union leadership willing to hit the national self-destruct button.

Can’t say I entirely disagree with you. I wouldn’t be in that income bracket anyway, far from it actually. I’m a public servant for > 20 years with a wife and children to support. Bought the house before the madness so will survive this bad news but some of my colleagues could go under with their mortgages.

I’d have not problem taking a 5% pay cut. Not if everyone else was as well.

But would 5% be enough to make us competitive? Would we not need more like 15% or 20%?

I’m an exporter (services). It looks like I’ll be taking a 100% pay cut come April.

I don’t think it will be enough. I’d prefer to keep jobs and cut pay. It’s a bitter pill for those in the public sector. I blame bertie for this problem.

In saturdays times there was an article about the annual cost of keeping a prisoner. It’s € 98k on average. I think some prisons are for minor offenders and shouldn’t cost as much. Somehow the average cost in postlaoise is €270k. It’s criminal :angry:

I hope your prediction doesn’t come to pass. If it does you seem like somebody who’ll do well anywhere. Best wishes & good night.

5% paycut terrible news? FFS. Lucky more like.

I can.

That recent ESRI report actually found that, while all public servants are paid more than their private sector equivalents at present, the overpayment is far higher proportionately in the lower paid grades. The lower grades get 30% more than their private sector counterparts - whereas the higher paid have a relatively lower 10% premium.

To give a figure that I found eye catching, the max point of the salary scale for a civil service clerical officer is over €37,000. That’s a very expensive way of getting clerical support.

The only way this pay cut will work is if its applied to all. Even that will still leave the lower grades getting far more than private sector equivalents.

The real figure is a 10% cut . 5% is only kite flying for the christmas season .

Blood… boiling…

Benchmarking indeed :imp:

Hands up anyone who is suprised by this story?