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State to appeal pay cut reversal ‘as soon as possible’

Supreme court opens hearings into civil servants’ pay cuts
The Supreme Court

The state will appeal three court decisions that reversed payroll reductions imposed on civil servants as part of an austerity drive in 2012, it was announced on Thursday after an interdepartmental meeting at the Legal Service.

The appeals will be filed as soon as possible, the statement said.

In its decision last Friday, the administrative court said a freeze of incremental pay rises, a 3 per cent contribution to pensions, and a reduction in civil servants’ pay was in violation of article 23 of the constitution regarding the protection of the right to property and therefore unconstitutional.

The state has 42 days to appeal from the day the decision was issued.

The implications were discussed in a meeting on Thursday with the participation of the Legal Service, the treasurer, finance ministry officials, the head of administration and personnel and other officials.

It was also decided to request the appeals be heard by the full supreme court bench of 13 judges. The state will also request that executing last week’s decisions by the administrative court be suspended.

If the state loses the appeals, it will then seek to retroactively compensate only those who filed the lawsuit for the benefits they argued they should have been getting since 2012. The state, however, would have to restore salaries across the board, a move that would cost around €200m per year.

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