Some public sector strikes and industrial actions are inevitable in protest against necessary 20 to 30% cuts in government pay bills that will be needed over about two years to curb massive budgetary deficits. The question is whether the government will cave in as it did in the recent budget and dilute the expected proposals for pay cuts to the point they have little effect.
In the event of a cave-in,the skittish international bond market whose money is needed to pay governmemt wages would soon refuse to take government bond issues,forcing Ireland into accepting a European Central Bank bailout on humiliating terms. So keeping the confidence of the bond market should be more important to the government than appeasing the unions.
I expect the government to exempt CIE,ESB and airport authorities from the pay cuts as a strike in those sectors could shut down the country.



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