Peter McLoone writes an opinion piece in today’s Irish Times: you can read it here. He details the reforms that were on offer during last week’s negotiations and it is an impressive list – the scope for substantial efficiency improvements in the public sector seems quite substantial.
In terms of analysis, eliminating inefficiency in the public sector will help raise living standards across the economy over the medium term. The union movement has recognised the potential for such fundamental reform and implementing these reforms would be a very positive contribution to the renewal of the economy.
In terms of the short run, Mr McLoone criticises the deflationary impact of public sector pay cuts. Since the union movement has agreed to a target of €1.3 billion in payroll savings in 2010 (albeit with the protection of the standard hourly rate of pay), I would be interested to know Mr McLoone’s views on the short-run macroeconomic impact of the alternative package proposed by the union movement.
In today’s edition, there is also an op-ed by my colleague John O’Hagan on public sector pay: you can read it here.