Government to insist on pay cuts

The government will push its case for pay cuts – instead of a pay freeze – in talks with trade unions this week, on the basis that prices are now expected to fall sharply this year.

17th January, 2009

The government will push its case for pay cuts – instead of a pay freeze – in talks with trade unions this week, on the basis that prices are now expected to fall sharply this year.

Some economists predict that prices could fall by as much as 3 or 4 per cent in 2009, as the rate of inflation falls sharply.

Taoiseach Brian Cowen will meet unions this week to negotiate a deal to restore order to the...

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