Politics

Ministers to pay ‘high price’ to avoid pre-election unrest

Top public sector union demands 5% increase for 376,000 state employees as talks to begin

Micheal McGrath, Minister for Finance, and Paschal Donohoe, Minister for Public Expenditure & Reform: ‘little or no appetite’ within government to go to war with the unions. Picture: PA

The government is preparing to spend at least an additional €1.25 billion to secure industrial peace heading into next year’s expected general election, the Business Post can reveal.

Unions representing 376,000 public sector workers are going to demand pay rises that at least match the current 5 per cent inflation rate in the forthcoming public sector pay talks.

The current pay deal, Building Momentum, is due to expire at the end of the year and ...