Speech by Taoiseach Micheál Martin at the Fórsa Biennial Conference Thursday 14 May 2026

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A Dhaoine Uaisle, tá áthas orm bheith anseo libh inniú.

Go raibh maith agaibh as fáilte a chur romham.

Ba mhaith liom buíochas a ghabháil le gach aon duine a chabhraigh chun an t-imeacht iontach seo a eagrú.

Thank you, Kevin, for the invitation to join you here today, and for the opportunity to address Fórsa's Biennial Conference.

I am delighted to have an opportunity to attend, hear about the issues that matter to your members, and to share the Government's perspective.

Economic Outlook

We meet at a time of significant global change and uncertainty.

Right now we are responding to the conflict in the Middle East, the ongoing war in Ukraine, and the growing use of tariffs and restrictions on global trade.

These challenges have arrived shortly after Brexit and Covid 19.

And underlying changes include geopolitical developments, demographic pressures, rapid technological transformation, and climate change.

We certainly live in interesting times.

And this global uncertainty inevitably shapes the ordinary lives of people here in Ireland.

Thankfully, Ireland's economy remains resilient, with record numbers of people in work, low unemployment and real wage growth. But that does not mean we can be complacent.

And it certainly does not mean that people are not feeling pressure in their daily lives - I know that many of your members continue to feel the impact of cost-of-living pressures.

The Government has taken significant steps to support households in recent years.

Budget 2026 set out an overall package of €9.4 billion. For context, this is over three times the pre-pandemic package.

We have targeted cost-of-living supports at those most in need of them, supports that are sustainable, while we move to address the underlying causes within our domestic control, that are driving up prices.

We are investing in the expansion of public services: there has been an increase of over 67,000 workers (full time-equivalents) in public service employment since 2020.

We have also prioritised infrastructure investment and delivery.

We are making unprecedented levels of public investment in areas such as housing, healthcare, energy, public transport and water.

I know that investment in housing and healthcare are of particular importance for Fórsa members.

I assure you that the Government is all too aware of the pressing need for the provision of additional housing, including social, affordable and private housing where it is needed most.

The Government's new housing plan recognises this.

While there is no upper limit to the number of homes the Government wants to deliver under this plan, we have set a realistic target of 300,000 over its lifetime.

Increased supply is the single most effective way to moderate price growth, improve affordability, tackle homelessness, and allow more people to put down roots in communities.

In 2026 alone, capital funding of over €9 billion is being provided for housing - the largest ever level of State investment in the country's history.

Encouragingly, over 36,000 new homes were completed in 2025, including over 9,000 new-build social homes.

The health budget has also increased significantly in recent years, from €14.11 billion in 2016 to €27.4 billion in 2026.

The National Development Plan provides an unprecedented level of investment of €9.25 billion for health infrastructure and digitalisation over the period 2026 to 2030.

Sláintecare 2025+, is an integrated reform programme for the period 2025 - 2027 to improve health and social care services in Ireland, to optimise patient outcomes and be responsive to their needs. This is an ambitious and multifaceted programme that will move Ireland towards a universal healthcare service.

We are continuing to build our workforce through the recruitment of key roles, retention measures and additional college places for key disciplines. There has been an increase of over 33,500 whole-time equivalents working in the HSE, since 2020.

We will continue to invest and reform, changing the way health services are delivered now and into the future.

I know we do not have the time for us to go through every sector, but I do want to also mention our investment supporting Special Needs Assistant provision.

As everyone here knows, SNAs play a vital role in supporting children with additional needs, and Government has matched that recognition with sustained, record investment.

Since the 2020/21 school year, the number of SNAs nationwide has increased by 45%, with growth in every county and across mainstream schools, special classes and special schools.

Budget 2026 alone provides funding for more than 1,700 additional SNA posts and 860 additional special education teachers, alongside continued expansion of special classes and special schools.

This means that by the end of the 2026/27 school year, there will be close to 26,000 SNAs working in Irish schools, alongside significant increases in special education teachers.

Cost of Living

We recognise and understand the impact of rising fuel costs as a result of the wars in Ukraine and the Middle East.

In recent months, we have acted again to reduce fuel prices at the pump, and to support those that may be struggling due to price pressures - particularly for those on lower incomes and those who have to cover a lot of miles for work.

Additionally, the sectoral supports introduced have an important role for the wider economy through curtailing price increases and inflation for everyone.

Food production matters, and haulage is existential for trade, which supports very many jobs across the economy and across the country.

Our response has been possible because we have adopted a responsible and prudent approach in recent Budgets.

However, the situation in the Middle East remains volatile and highly uncertain. The economic fallout will depend on the depth and duration of the conflict.

We will navigate this period of volatility. But we must remain flexible in our response.

We can't mitigate every increase in costs.

We must retain resources to ensure we can deal with any further deterioration in the global economy. As a small, open economy, with a highly concentrated industrial base, there are many risk factors outside of our control.

Expenditure increases must be responsible and sustainable and the tax base must be broad. We must manage our finite resources, making the difficult choices, while also taking on the reforms needed to deliver our ambitious plans.

In this vein, we must continue to provide resources for infrastructure needs and the future needs of workers, including through transfers to the Future Ireland Fund and the Infrastructure Climate and Nature Fund.

However, we will also continue to focus on building resilience, to invest in human capital - in education, skills, training, ensuring that workers have the supports and the stability needed to succeed in this changing global environment.

Social Dialogue

One of Ireland's real strengths in navigating change is our tradition of social dialogue and partnership.

Engagement between Government, unions and employers through bodies like the Labour Employer Economic Forum, which I chair, has provided stability through periods of significant challenge.

And it is precisely because of the uncertainty we face globally that this model matters more than ever.

Such dialogue allows us to share information, test policy responses and reach consensus in uncertain times. For example, during the pandemic, the development of the Work Safely Protocol took place under the LEEF.

This social partnership approach is, in my opinion, one of the foundations upon which we have been able to make the social and economic progress we have as a nation. Progress that has raised living standards, has helped us become one of the best educated workforces in Europe, has transformed our health outcomes - we have achieved this and much else by working together on the basis of respect, and a shared commitment to improving the lives of our people.

I believe that ensuring progress continues, to the benefit of generations to come, will require the same sense of partnership and respect.

In that context, I want to be clear that the Government will only engage with established and representative employer and trade union organisations.

Mechanisms like the LEEF, the National Economic and Social Council, and the annual National Economic Dialogue will be where discussions take place.

Through the LEEF, the social partners have helped design and implement key employment and social policies in recent years which have resulted in improved conditions for many workers.

For example, it was under the LEEF that Ireland's Action Plan to Promote Collective Bargaining was developed.

At the beginning of my remarks I acknowledged FORSA's interest in and constructive approach to housing as an issue affecting members. So I am also pleased to also report that preparations to re-establish the LEEF Subgroup on Housing are progressing well.

Collective bargaining is a cornerstone of trust and fairness in the workplace and the Action Plan is an agreed approach to strengthening the industrial relations framework.

While in recent months, at the request of the Irish Congress of Trade Unions, we have also seen the establishment of further thematic sub-groups under LEEF on issues such as migration, housing, and health.

However, in light of the current economic and social challenges, I believe we need to go further than the current model of social dialogue.

I believe there is scope to agree deeper shared understandings about the way forward.

We all know that many of the factors that affect workers' standard of living - such as public services, taxation, housing, employment rights, pensions and childcare - fall outside normal pay negotiations.

As a first step, an intensive process of discussion has commenced under the LEEF on the current challenges to energy security and affordability, as well as Ireland's broader economic resilience.

And, of course, as in previous years, the National Economic Dialogue this summer will once again provide us with an opportunity for wider discussion on economic priorities and challenges in advance of Budget 2027.

Remote Working

The way people work in Ireland has changed in recent years.

Recent data from the CSO shows that remote and hybrid working has become a significant feature of working life in Ireland - with close to a million people working from home at least some of the time.

Ireland was among the first countries in the European Union to introduce a legal right to request remote working - an approach that we believe strikes the right balance between flexibility and the need for businesses to remain competitive, profitable and viable.

But we also recognise that work is diverse.

Not every role can be done remotely.

Not every service can be delivered from a distance.

The challenge and the opportunity is to ensure that flexible working arrangements are fair, consistent, and support the delivery of high-quality public services.

A recent review of the legislation, informed by engagement with workers, employers, and the Workplace Relations Commission, provided some useful insights.

A key finding of the review is that the challenge is awareness, not effectiveness.

Many people are simply not aware of their rights.

That is why a national information campaign is underway to drive awareness and encourage increased use of the legislation.

I know that there has been some criticism that the legislation is balanced in favour of employers.

To address the perceived imbalance, the WRC will look to revise the Code of Practice, in consultation with employer and worker representatives.

This review forms part of the Government's wider strategy regarding remote work, including broadband rollout, and home-working tax relief.

In addition, at the request of the Irish Congress of Trade Unions, I asked the National Economic and Social Council to carry out research into the impact of remote and hybrid work in Ireland.

That report will provide us with a greater evidence base on the full range of economic, social and environmental impacts to inform future policy.

Flexible working is now a permanent feature of the modern workplace - and one that, if implemented well, can benefit employees, organisations, and society as a whole.

AI

We are also at the beginning of another major shift in the world of work, with the rapid evolution of digital technologies and the transformative power of Artificial Intelligence.

AI is no longer a distant or abstract issue.

It is already becoming part of all modern economies - and potentially a driver of economic and productivity growth.

And like every major technological change, it brings both opportunity and responsibility.

The Government's approach is clear: we want to harness the digital and AI revolution to support productivity, innovation and economic growth, and to deliver more effective, and more modern public services.

AI and digital tools have the potential to transform how we work, to reduce administrative burdens, to improve efficiency, and to enhance the services we provide.

For example, we have seen how AI can assist with diagnostic imaging at St. Vincent's University Hospital or reduce processing times in agricultural grant applications.

But we should be clear about this.

This is not about replacing people.

It is about giving public servants better tools to do their jobs and freeing up time to focus on the work that matters most.

It also means investing in skills, ensuring that workers are supported to adapt, to learn, and to work confidently alongside new technologies. My colleague Naoise Ó Cearúil is developing interesting proposals on this.

We need to ensure it is developed and used in ways that are safe, fair and accountable, and that augment human capability rather than replace or erode it.

Through the Government's new Digital and AI Strategy, we are implementing over 90 actions to harness digital and AI opportunities for continued economic growth; to enhance our digital public services; and to empower our people to thrive in a digital society.

We are implementing the EU AI Act and establishing a new AI Office.

And last year, the Government published guidelines for the responsible use of AI in the public service, providing a framework to ensure AI is safe, ethical, effective and aligned with people's rights.

While it is still too early to fully understand the impact of AI on the workplace, it is not too early to explore the issue in greater detail, because it will certainly have an impact.

I am therefore proposing that the Government, trade unions and employers would establish a Forum under the LEEF to specifically explore the impacts of AI and wider digital change on the workplace in more detail.

Public Service Pay Agreement

Pay in the public service has, for over a decade, been governed by a system of collective agreements, since the negotiation of the Croke Park Agreement.

These collective agreements have an important place in public service industrial relations.

They allow public pay issues to be addressed in a fair, equitable and affordable way, balancing the needs of public servants with the responsibility to manage public finances sustainably.

This approach has served both the country and public servants well over many years.

Through some of the most challenging periods in recent history, including the aftermath of the last economic crisis, this collective approach has helped us navigate difficult decisions together, in a way that underpins social solidarity and protects social cohesion.

I want to again acknowledge the role that public servants, and Fórsa, played in that.

Our shared effort, and the willingness to engage constructively, helped lay the foundations for our swift economic recovery.

Successive Public Service Agreements are a means of investing in our public services and have also enabled the ongoing delivery of reform across these services.

Since 2020, Public Service Agreements have consistently delivered real pay increases for public servants, with a clear emphasis on prioritising the lowest paid.

Over the period 2021 to 2023, the lowest paid saw increases of up to 12.5%, compared with about 9.5% for the public service overall.

That approach carried through into the current Public Service Agreement where over the lifetime of the agreement, the lowest paid public servants will see cumulative benefits of up to 17.3%.

I know this Agreement runs until the 30th of June with the final pay increase of 1% for all public servants due to take effect in June.

However, the full implementation of the current agreement, including the local bargaining element, remains the immediate priority.

I have made clear to all Ministers that I want and expect rapid progress in the coming weeks to resolve outstanding aspects of applying the local bargaining clause.

Progress is also being made on the commitment to repeal section 4(2) of the 2009 FEMPI Act.

The Government have approved the drafting of the Public Service Pay Bill 2026, and the Bill has now been placed on the priority drafting list for the summer period. Again, I expect to see this move forward quickly.

The Government also wants to explore the potential for a new agreement with public service unions and representative associations over the period ahead. I hope to see initial contacts made on this shortly.

A stable industrial relations environment is essential to ensure stability and certainty for public service employees, for public service delivery, for fostering economic growth, and social cohesion, to the benefit of all our people.

Conclusion

I want to thank Fórsa for your constructive engagement and the important role you play across the public service and wider Irish society.

The value of working through issues together, in a structured and respectful way, is clear.

That approach has served our country well, and it will continue to be important as we respond to the changes, and challenges, we face.

And I look forward to continuing to work together in the period ahead.

Thank you - and I wish you all a productive and inspiring couple of days ahead.

Go raibh míle maith agaibh.

ENDS