Head of IMPACT warns against deal with govt on public sector pay

The head of the Impact trade union is warning that a deal with the government to avoid pay cuts will result in public sector job losses in the next few years.

Details of a private and confidential letter from Peter McLoone to officials in the union have emerged in today’s Irish Times.

In it, he expresses his opinion that the alternative to pay cuts is likely to be a ‘significant reduction in public service numbers’ over the next 3 to 4 years.

he also admits that the government is not likely to increase taxes to make up the shortfall in exchequer funding as advocated by the unions.

Sinead Spain spoke to Martin Walll Industry correspondent with the Irish TImes about the letter which he has seen