Ireland's public sector employees are set to stage a strike on Tuesday, protesting against government proposals to cut pay to reduce budget deficit.
More than 250,000 workers are expected to take part in the 24-hour nationwide strike. The chairman of the public service committee of the Irish Congress of Trade Unions, Peter McLoone said Monday that the government forced them to stage a strike.
Ireland's Prime Minister Brian Cowen is of the view that spending cuts are needed to stabilize the budget deficit at 12% of gross domestic product. The European Union has set a deadline of 2014 for Ireland to bring down its deficit to below the EU ceiling of 3%. The Irish government wants to reduce about EUR 4 billion from spending on the December 9 budget.
However, some public sector unions have partially scaled back strike due to flood in some parts of the country. Monday, one of the country's largest public service unions, IMPACT, has said the strike will cause hardship to those who depend most on public services. IMPACT has withdrawn its notice of strike action, in respect of its members working in health services in Cork.
IMPACT assistant general secretary Marie Levis stated that the union has withdrawn the strike notice in order to allow staff in the HSE Cork to respond to the "hardship and genuine emergency situations that now exist as a consequence of the serious flooding in Cork City and County."
"While industrial strikes will undoubtedly send the wrong signal overseas, international markets are likely to be less impressed if the Government softens its stance and takes the easy option as regards tackling the public finances problem (raising taxes and/or cutting capital expenditure)," Alan McQuaid, chief economist at Dublin-based stockbroking firm Bloxham said on November 20. However, the economist believes that there is a steely determination on the part of the Government to do the right thing, and cut day to day expenditure.
For comments and feedback: editorial@rttnews.com