The problem for the Government in dealing with the public sector pay issue is that it is about a lot more than pay. Time and again the nurses and teachers, interviewed by the media on the picket lines, spoke about not being able to afford a house, or not finding an affordable place to rent, or about the costs of a long commute to work in a Dublin school or hospital.

Ireland’s housing omnicrisis lurks behind this dispute, squeezing the younger and lower-paid public sector employees who have been front and centre in the media this week and making it hard – or impossible – to live close to where they work. Their older, better-paid colleagues hover in the background, hoping to benefit from the public sympathy for those who are living from month to month and the resulting pressure on the Government to pay up.

A first step towards a deal has been taken with talks to get underway and next week’s strike action called off, though the work to rule continues, A bumpy road still lies ahead. There will be a lot of noise, but a deal will be struck. The €1.2 billion set aside in the budget would “buy” a 3.2 per cent average pay rise, but everyone knows it will be higher. An average increase of close to 4 per cent – halfway between the Government’s initial offer and the likely union opening demand –is the likely outcome.

Both sides have to be seen to go to the wire in the talks now getting underway and breakdowns along the way are possible. The Government has to give the impression of safeguarding the public purse. The union leaders have to fight for every last euro. The Workplace Relations Commission will lay on the tea and sandwiches for a few late nights. A separate third party mediator, Kevin Foley is to try to chart a way forward. He has his work cut out, for........

© The Irish Times