More than 30,000 workers in the childcare sector are set to benefit from pay increases of about 6 per cent after agreement was reached between employers and Siptu.
However, up to €10 million in public funding will be unclaimed because of the length of time the two took to strike a deal.
Minimum wages in the sector for those aged 20 or above will increase from €15 per hour to €16, while the basic pay for a graduate lead educator will rise from €17.50 to €18.60 per hour, and a manager will earn at least €20.20 per hour, up from €19, increases of 6.7, 6.3 and 6.3 per cent respectively.
The agreement marks a success for the union, which had advocated for increases of at least €1 per hour for all grades while the two employer representative bodies had initially proposed pay rises weighted heavily in favour of the managerial grades.
In a statement, SIPTU sector organiser, Diane Jackson, said: “Our red line was clear: minimum rates of pay had to increase by at least €1 per hour.”
“The deal provides increases to the minimum pay rates for Early Years Educators, Lead Educators, Deputy Managers and Managers, with average minimum rates rising by approximately 6.5 per cent. This is on top of the average 10 per cent increase which was implemented last October.
“We will now conduct a nationwide ballot of members over the coming weeks.”
With the agreement set to be ratified as an Employment Regulation Order, which will make payments of the rates mandatory, it will have to be subject to an eight-week public consultation and so it will be at least two months before the increases take effect.
The Government had committed €45 million in the last budget to increase the wages of those working in the sector, which continues to struggle and retain staff, particularly young graduates who opt in large numbers to spend an additional two years in college to become primary schoolteachers.
The public money, however, was to be allocated evenly over the year from September 1st, which had been the target date for the increases to take effect.
The result is that each week the increases are delayed after that date causes a loss of more than €865,000 intended for the sector’s more than 30,000 workers.
Siptu, which represents about 6,000 of the staff across all grades, has welcomed the terms of the agreement, having said its members in management had felt the original proposals were unfair to less senior staff.
Speaking ahead of the final terms emerging, Karen Clince, managing director of one of the country’s largest providers, Tigers, had said many operators were having to pay additional premiums themselves to ensure the experience of managers and other senior staff was reflected in their pay.
A coalition of NGOs, including the National Women’s Council, has campaigned for the Government to entirely take over the payment of staff in the sector, something it says would largely achieve the stated aim of reducing the fees paid by parents to the promised €200 per month.
Early Childhood Ireland, to which several thousand providers are affiliated but which was not a party to the pay talks, had argued the staff should be paid in line with primary schoolteachers’ higher salaries and significantly better terms.