Fórsa general secretary, Kevin Callinan has warned that Budget 2026 will have major implications for wage bargaining across the economy.
Speaking on Budget 2026, Fórsa’s general secretary has said that trade unions will need to review their bargaining strategies for the months ahead.
He said: “Tax bands and allowances aren’t indexed and cost of living measures like energy credits are being discontinued. So the only way living standards can be maintained is through higher wage increases. It’s a two-pronged attack on workers.”
“This will have a significant effect on how wage bargaining is approached, including in the public service when the current public sector pay agreement runs out in June of next year”, he went on to say.
Mr. Callinan is general secretary of Fórsa, which represents over 90,000 public sector workers. He is also chair of the Public Services Committee of ICTU and leads negotiations on pay for approximately 400,000 public servants.
He continued: “Most trade unions in the private and public sectors will be reviewing their bargaining strategies in the light of the apparent decision to let workers bear the brunt of the belt-tightening.”
“What makes it more galling is the fact that tax bands could be adjusted for all workers for the full year instead of reducing VAT for the hospitality industry. This is clearly a political choice and one that isn’t underpinned by the evidence, as employment overall has grown in the sector”.
“At a time when the economy continues to perform well, you could be forgiven for thinking that we were back in the austerity years. This is how workers will see it, as the cost-of-living crisis is far from over for many of them.
“Adjusting personal tax bands and allowances is a modest and prudent measure. The choice not to do so could have a much greater cost if industrial uncertainty and conflict ensues. Such a scenario is looking far more likely now”, he went on to say.
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