To: Each Branch Secretary
Date: 8th June 2017
News Update: 010/17
Re: Revised News Update – WRC Thursday 8th June 2017
Please circulate to all members
The Public Service Talks ended this morning shortly after half two at the Workplace Relations Commission bringing to an end almost three weeks of negotiations involving over 20 ICTU affiliated trades unions including the CPSU.
A DRAFT Final text was presented to the unions by the WRC covering a wide range of issues including pay, pensions, new entrants pay and working hours. It will run from 2018 to 2020.
A range of CPSU related issues including HCO Uplifts were addressed positively as part of sectoral discussions and the details of these will follow.
An initial summary of the core elements of the Draft Agreement affecting all unions is set out below but further details will be circulated later on Thursday and Friday. The Executive Committee is being called to consider the details of the Agreement and the outcome of the sectoral discussions as they affect the CPSU in the coming days. Ultimately it will be for the members to decide on the Agreement in a national ballot which is to be arranged by Head Office subsequent to the discussions at the Executive Committee.
In summary the draft agreement provides for all of our members to exit the FEMPI pay cuts during the three years of the agreement while all members earning up to €34,500 will exit the pension levy (PRD). The PRD due on any member’s annual salary above that figure will have the PRD on that sum converted into a new superannuation deduction which is expected to be in the region of €300 a year at the max subject to the normal tax relief applicable. The value of pre 2013 pensions is protected. PRD on non-pensionable earnings will cease in 2019.
Although there were demands from the employer to radically change the terms of the protocol on Outsourcing including the introduction of a €10m threshold below which the protocol would not apply we were successful in preventing any such change.
Despite determined efforts we have not secured the reversal of the unpaid additional hours as Government were absolutely unwilling to offer any change. The draft agreement does however provide mechanisms which offer some scope to ameliorate the impact of the hours on members. While the two lower entry points have not been removed the agreement also provides a mechanism under which we can seek to address these during the period of the agreement.
The deal in percentage terms is better for lower earners than those on mid to higher rates of pay.
A more detailed analysis will be drafted over the next day or so and the full agreement and the outcomes specific to the CPSU such as the increase in the number of HCO uplifts will be considered by the Executive Committee.
Summary of Proposals for an extension of the Lansdowne Road agreement
This is a summary of the main points of the outcome of negotiations on a proposed extension to the Lansdowne Road agreement. A more detailed summary (and a full text of the proposals) will be available on the CPSU website as soon as possible. The final decision on whether the proposals are agreed will be determined by ballots of members of the unions concerned.
- Duration of proposal: 1st January 2018 to 31st December 2020
- By 2020, more than 90% of public servants will be out of FEMPI pay provisions, and almost a quarter will have exited FEMPI pension levy payments
- 73% of public servants gain more than 7% by 2020.
Pay and pension levy
- 1st January 2018: 1% pay adjustment
- 1st October 2018: 1% pay adjustment
- 1st January 2019: Pension levy threshold up from €28,750 to €32,000 (worth €325pa)
- 1st January 2019: 1% pay adjustment for those earning less than €30,000
- 1st September 2019: 1.75% pay adjustment
- 1st January 2020: Pension levy threshold increased to €34,500 (worth €250pa)
- 1st October 2020: 2% pay adjustment.
- Combination of pay and pension levy adjustments worth 7.4% to those earning €30,000 a year or less, over lifetime of deal
- Combination of pay and pension levy adjustments worth 7% to those earning between €30,000 and €35,000 a year over lifetime of deal
- Combination of pay and pension levy adjustments worth 7.4% to those earning between €35,000 and €40,000 a year over lifetime of deal
- Combination of pay and pension levy adjustments worth 7.2% to those earning €40,000 and €45,000 a year over lifetime of deal
- Combination of pay and pension levy adjustments worth 7.1% to those earning €45,000 and 50,000 a year over lifetime of deal
- Combination of pay and pension levy adjustments worth 7% to those earning between €50,000 and €55,000 a year, over lifetime of deal
- Combination of pay and pension levy adjustments worth between 6.6% and 6.9% for those between €55,000 and €80,000 a year, over lifetime of deal.
- No change in value of pensions. No move to Consumer Price Index (CPI) link for increases over lifetime of the agreement. Pay to pension link to continue. No career average calculation for future service.
- Highest additional pension contribution for those on ‘fast accrual’ pensions – lowest for post-2013 entrants in new ‘single’ pension arrangement.
- No weakening of outsourcing protections
- No change in working hours, but facility to revert to pre-Haddington Road hours with commensurate pay adjustment
- No extension of Saturday working: Facility to review rostering arrangements for groups, but no change without agreement
- An end to pension levy on non-pensionable earnings, including overtime