The Public Service Agreement, ratified by the Public Services Committee of ICTU, provides a comprehensive agenda for Public Service transformation and a framework for public service pay determination over the period to 2014. This Agreement will result in significantly enhanced public services and a more cost effective and better integrated Public Service. It provides an agreed shared vision for transformation in all sectors of the Public Service, and an agreed path on how it is to be achieved. It also provides certainty for public servants in relation to job security and income levels. 

What are its benefits?

The Public Service Agreement underpins stability and will help restore prosperity. In it we have a shared view, between management and unions, of the sort of changes across the Public Service that will produce greater efficiency, better services for the public and more satisfactory working conditions for public servants. The Public Service Agreement is based on shared principles and specific agreed commitments.

It will result in significantly enhanced public services and a more cost effective and better integrated Public Service, which is in the interests of citizens and public servants alike. The Public Service Agreement enables progress on a whole range of important areas such as redeployment, greater flexibility, reconfiguring the design and delivery of public services and improved performance management, to name but a few.

By accepting the Public Service Agreement, public servants have accepted the imposition of a pension levy and pay cuts resulting in an average combined reduction of 14% in pay. This has resulted in an estimated annual pay saving of €1.8 billion. The Agreement provides for an effective freeze in pay up to 2014.

There has already been a reduction of about 12,000 in public service numbers since end 2008 and, in line with the National Recovery Plan, there will be an overall reduction of almost 25,000 by end 2014 (from an end-2008 base).

In contrast with the experience in other countries where less severe reform measures have been pursued, there has been no industrial unrest. We have managed service continuity – particularly important to the most vulnerable in society.

The reduced numbers mean that there has been increased productivity across the Public Service as well as producing a reduction in the public service paybill.

Changes in work practices will also lead to reductions in the cost of overtime and other forms of variable pay. Services will be restructured, work locations changed and services to the public offered over longer periods. New technology will be employed to deliver services in better ways to the public. Staff can be redeployed to the areas where they are most needed.

How is it being implemented?

The implementation of the Agreement is being driven by the Implementation Body, independently chaired by P.J. Fitzpatrick. The Implementation Body will also ensure that any difficulties which may be encountered are resolved in a fair and speedy manner. Sectoral Bodies have being appointed to drive forward implementation of the sectoral agreements under the Public Service Agreement.

The first round of Sectoral Action Plans, for effecting the changes set out in the relevant sectoral agendas contained in the Agreement, were published on the relevant Departmental websites last Autumn. These Action Plans have now been revisited to take account of the specific organisational impacts of decisions in relation to the National Recovery Plan and Budget 2011.

The revised Sectoral Action Plans have all been submitted to the Implementation Body. These are now being reviewed by the Implementation Body. The implementation of these Action Plans will deliver the type of changes which are required to secure cost savings, minimise the impacts of current resource constraints on service quality and availability, and improve services through the use of technology and other means.