Public sector strike cancelled as Government and union bosses agree new pay deal 

A major public sector strike on Thursday has been called off, as the Government and union bosses have agreed a new pay deal.

Over 300,000 public sector workers would receive pay rises of 10.75% over the lifetime of the draft deal, which will run for two years and nine months.

Talks at the Workplace Relations Commission (WRC) concluded in the early hours of the morning, with the Public Services Committee of the Irish Congress of Trade Unions formally recommended that nationwide strike action on Thursday be suspended.

This would allow affiliate unions to consider the draft pay deal and arrange for the balloting of union members.

Nationwide school closures, hospital appointment cancellations and office closures had been planned to coincide with regional rallies on the same day as 50 world leaders arrive in Dublin for an EU summit.

The proposed deal is set to run until March 2029, with 2% backpay or a minimum payment of €1,200 backdated to September 1.

Other terms include:

• 1% pay rise on April 1 2027 
• 1% pay rise or minimum payment of €600 on August 1 2027 
• 1.5% pay rise or minimum payment of €600 on November 1 2027, whichever is higher.
• 1% pay rise on March 1 2028 
• 1% pay rise or minimum payment of €600 on June 1 2028, whichever is higher 
• 1% pay rise on October 1 2028 
• The implementation of a local bargaining increase of 1% on March 1 2029.
• 1.25% pay rise or minimum payment of €750 on March 2 2029, whichever is higher.

The remaining 1% local bargaining pay increase would be implemented through the next public pay deal, the unions and Government agreed.

It was also agreed that lower pay provisions will rise from €50,000 to €60,000, which are expected to see pay rises of over 18% for some public sector workers over the deal’s lifetime.

Proposed agreement is 'fiscally sustainable'

Public expenditure minister Jack Chambers welcomed the deal, saying the proposed agreement is “fiscally sustainable” while also providing certainty to public service workers, the Government and the public.

“The agreement reinforces the commitment to ongoing reform and modernisation across the public service, supporting innovation, digital transformation and greater flexibility in how services are delivered,” Mr Chambers said.

“It will strengthen the public service’s ability to meet future challenges, support the delivery of vital infrastructure and national priorities, and deliver high-quality services that provide value for taxpayers.”

Mr Chambers added the Government would move to formally approve the new deal, while adding he was “hopeful” union members would endorse the agreement.

He said the minimum value for public sector workers would be 11.3%, which is due to the compounding nature of the pay rises.

The deal was struck after talks collapsed in recent weeks, after union said the Government’s previous offer had not been sufficient.

However, a Government-appointed group on Monday night put a revised deal on the table, enabling union bosses to return to negotiations.

With a draft deal now on the table, the national executives of ICTU public service committee affiliate unions will meet in the days ahead to analyse the agreement’s full terms before a recommendation is made to union members.

'Strong review clause' within draft deal

Speaking on RTÉ’s Morning Ireland, Siptu deputy general secretary Adrian Kane said the draft deal is “unashamedly weighted towards the lower and the middle paid”.

He said there is a “strong review clause” within the draft deal, allowing either side to invoke a review if “inflation gets to unexpected levels”.

“The clause, as it's written, would allow for either party to invoke that, in the event that there are exceptional measures or events that weren't foreseen at the time of the negotiation of the of the deal,” Mr Kane said.

Mr Kane said the agreement reached is a “members’ deal”, adding that if unions had not taken strike action last month it would not have been “on the table last night”.

Asked about what productivity and reform elements which were included within the deal, Mr Kane said there had been “good agreements” on areas like AI, hybrid working and public procurement.

The deal has also been welcomed by Tánaiste Simon Harris, who said it would “ensure our public servants are paid a decent wage for a decent day’s work”, while also securing productivity gains within the public service.

“What we have now is an agreement that delivers a fair and reasonable outcome for our public servants, the public service and taxpayers,” Mr Harris said.

The overall cost of the deal over its 33-month length will be €5.2bn.