Responding to the Cabinet’s decision to delay the roll-out of auto-enrolment, the Irish Congress of Trade Unions said:
"First, this decision must be viewed in the context of Government decisions taken in the past two weeks. The promised 10 days sick pay is to be halved to five days, despite evidence from their own business impact assessment not supporting a row-back, the living wage commitment is to be kicked out for three years, and a decision on the Low Pay Commission recommendation to abolish sub-minimum rates for young workers is to be deferred indefinitely.
"Putting to one side the fact that auto-enrolment has been on the cards for a whole 20 years, businesses and payroll services providers have already had a 15 month lead-in time from the passing of the legislation, when the details of the scheme were known, and the commencement order was signed a full year in advance of the planned 30 September 2025 start date.
"Delaying bringing an end to our failed voluntary approach to occupational pensions will be a bitter pill to swallow for the 811,000 workers without a workplace pension and facing their income and living standards plummet in retirement.
"Aside from cost for individual workers and their families, how much will this decision to leave the scheme to sit on a shelf gathering dust cost the public purse? Contracts for services have been signed, staff recruited, a tendering process is underway. This will cost real money and reputational damage, which will come with its own price tag into the future.
"The proposed new January 2026 starting date means that the phased increase in employer pension contributions from 1.5% to 3% gross salary after three years will coincide with government's new 2029 starting date for a living wage. It puts us back to where we are today with the business lobby predicting Armageddon from any modest improvement in workers' conditions, and in a general election year too.
"The Business Post/ Red C opinion poll at the weekend confirms the scale of public opposition, across all demographics, to government's broken promises on the living wage and sick pay. Trade unions will continue to speak out on their behalf and hold government's feet to the fire to deliver on their promises."
