High Inflation to Influence Congress in the Wage Negotiations
13 Apr 2006
The Irish Congress of Trade Unions is very disappointed with the unexpected rise in inflation. Irish price levels are already 22 per cent above the EU25 average and this further rise, in March 2006, is substantially above the EU average of 2.2 per cent. Thus it will add to the high cost of living faced by Irish workers.
Congress has pointed out that last year, real average industrial earnings actually fell - for the first time since the 1980s. In the previous decade, real industrial earnings grew by 25 per cent above inflation. This fall in living standards in 2005 was doubly disappointing in a booming economy. Cleary, the shift in income distribution from wages to profits should not continue, Paul Sweeney, Economic Advisor, said. This rise in prices would influence Congress in its wage negotiations.