Everyone has part to play in confronting economic reality

Relief has been the overwhelming reaction following the acceptance by Tara Mines employees in the past week of a cost-cutting plan worked out after weeks of negotiations between unions and management to save the Navan operation from an almost certain closure. A shutdown at Europe"s largest zinc mine, where close to 700 people are employed, would have had very serious consequences for not only the mine workers but also the local economy in Navan and further afield in Meath, where an estimated 1,800 to 2,000 other jobs depend on the giant Boliden operation. The terms of the agreement hammered out between the mine management and the unions will involve a move to a continuous seven-day four-shift cycle and payment for public holidays pegged at the general rates of pay. There will also be an increase in the shift premium paid to workers. Just how perilous the mining industry has become was illustrated in the past week by the closure of the Galmoy zinc mine in Co Kilkenny two years ahead of schedule. Workers leaving the mine there last week described losing their jobs as like going into a vacuum, as there is nothing there for them in terms of alternative employment. The Galmoy workers had no choice in the closure decision - it was forced upon them by the mine"s Canadian owners, citing dwindling zinc reserves and the very substantial drop in the price of ore. The fate of the Navan mine was in the hands of its workers, however, and they chose, by a relatively narrow margin, the pragmatic option of accepting a continuous production cycle and new pay terms. Clearly, it was a difficult decision for many and a bitter pill to swallow but, in the end, it came down to saving their jobs at an exceptionally difficult time when any gainful employment can be considered a bonus. As the past few weeks have shown, accepting some pain is going to be part and parcel of the employment market this year. Some economists believe that we, as a nation, are better off taking a short, sharp shock now rather than delaying action until later when things could be infinitely worse 12 to 18 months down the line. That means working longer hours, accepting pay freezes or even pay cuts to keep one"s job may be unpleasant, but a relatively small price to pay for keeping one"s job in this climate. We are facing an unprecedented economic crisis in Ireland and, if pain has to be endured, then it needs to be shared by everyone across all ranks in both the private and public sectors. Companies in the private sector, which are losing an estimated 500 jobs per day, are already imposing pay cuts which employees are accepting simply to see that pay cheque coming in every month. The Government says it needs to cut €15 billion in spending over the next five years. That means public servants may need to swallow the same medicine as their counterparts in private enterprise, though talks with public sector unions appeared to be going nowhere early this week. However, there can be no delaying taking the hard decisions on public spending - everyone"s very future may depend on it. The speed and scale of the economic downturn, nationally and globally, coupled with the virtual destruction of the world"s financial system, means this recession is unparalleled in its size and complexity since the Great Depression of the 1930s. Ireland is being hit harder than most due to its small and very open economy which leaves it exposed to the financial hurricane blowing across the globe. Everyone, from Government down, has a duty to put their shoulder to the wheel and share the burden we are all being asked to carry equally. It costs €60bn to run the country every year and only €40bn is being received in taxes. Ireland needs to borrow €20bn to make up the shortfall and servicing this expensive debt alone will cost millions per day. An imaginative and workable road map is needed from our political leaders to bring some stability to the country"s finances but that effort must be matched through the various strata of Irish society to not only confront but overcome the very serious challenges now evident in the country"s economy.