Congress calls for 'generous' wage increase
1 May 2006
Business enjoys record profits
With Irish business enjoying record profit levels the economic conditions for a generous wage settlement have never been better, Congress economic advisor Paul Sweeney said today (May 1)
Mr. Sweeney was speaking ahead of the start of negotiations on pay and workplace issues, which commence tomorrow (Tuesday, May 2).
Mr. Sweeney said that Irish business has "never had it so good: many firms are enjoying double digit profit levels, while business here pays far less tax and social contributions than their European counterparts. They can afford a generous wage settlement.
"According to sources like the Economist, Ireland has one of the best business environment's in the world, ahead of countries like Britain, the US and Hong Kong.
"The cost of doing business in Ireland is comparatively low, despite what business may say," Mr. Sweeney pointed out.
"Meanwhile, Irish workers are facing increased costs, with government-imposed indirect taxes pushing up price levels and eating into wage packets. Workers have to be compensated for that."
In addition, Mr. Sweeney said, a wage increase would also have to compensate workers for wage degradation caused by exploitation and failure to observe and enforce good employment standards.
Earlier this month, Congress revealed that real industrial earnings fell last year, for the first time since the high unemployment era of the 1980s.
Figures released by the Central Statistics' Office (CSO) showed that hourly earnings only rose by 2.1 percent in 2005, while inflation rose to 2.5 percent. Under the terms of Sustaining Progress, earnings should have risen by 4 percent in 2005. Thus the rise was just half of what was negotiated for
workers by Congress.
ENDS