Legal Constraints on Contract Cuts

rodento

Anyone know why the public service pay can be cut by leglisation

JUNIOR FINANCE MINISTER Brian Hayes has said that legislating with regards to public sector savings “is inevitable if there is no agreement”

http://www.thejournal.ie/croke-park-...00616-Feb2013/

Yet contracts on pensions inmune to such mechanisms and upward only rent reviews seem to be protected on compensation grounds

Attorney General Maire Whelan told the Cabinet that a change in the existing law would result in taxpayers having to pay compensation to landlords.
Jobs Minister Richard Bruton said the Government was not going to move on the upward-only rent reviews because of this legal advice

http://www.independent.ie/business/p...-29068672.html

dissed doc

rodento wrote: »

Anyone know why the public service pay can be cut by leglisation


http://www.independent.ie/business/p...-29068672.html

Because the goverment is effectively a benign dictatorship? They can pick and choose to legislate as to who's contracts are torn up and broken (hospital consultants) and who's are honoured as if the second coming of christ (bankers and property developers).

clear thinking

Cutting rent rolls would collapse the economy, banks would have to write down values of most assets requiring a massive new capital call (ie the taxpayer) and a bail-out mark two would be likely.

Cutting civil service non-pay spending and implementing a reverse benchmarking to reflect pay reality and budget sustainability will not destroy the economy, it will be an incremental closing of the 8bn spending gap largely there as a result of ridiculous pay rises from the benchmarking and spending glut of the early noughties.

woodoo

clear thinking wrote: »

Cutting rent rolls would collapse the economy, banks would have to write down values of most assets requiring a massive new capital call (ie the taxpayer) and a bail-out mark two would be likely.

Cutting civil service non-pay spending and implementing a reverse benchmarking to reflect pay reality and budget sustainability will not destroy the economy, it will be an incremental closing of the 8bn spending gap largely there as a result of ridiculous pay rises from the benchmarking and spending glut of the early noughties.

So why do they lie about it then.

clear thinking

woodoo wrote: »

So why do they lie about it then.

You got me there, i'd guess there's no votes in telling us the plain and simple.