A Congress delegation has today told a Dail sub-Committee that a simple comparison of wage rates in differing countries was not a sound basis for setting pay in sectors of the economy governed by registered agreements and employment regulation orders.
Speaking before the Select sub-Committee on Jobs, Enterprise & Innovation, Congress vice-President Patricia King welcomed provisions in the Industrial Relations (Amendment) Bill that would give a firm, legal underpinning to Registered Employment Agreements (REAs) and Employment Regulation Orders (EROs).
However, she said the proposal to allow wage comparisons with 'other states' when setting pay rates in certain sectors here was "too simplistic, too loose and wide open to abuse. Theoretically, with this proposal, you could compare wage rates here with countries in the Developing World.
"No economist of substance would accept such an imprecise definition. Instead, the key is purchasing power - what your wages will buy you every week. In addition, factors such as taxation levels and public service provision need to be taken into account. For example, many EU countries provide free GP visits while Ireland does not," Ms King said.
The Congress delegation was briefing the sub-Committee on the details of its submission on the Industrial Relations (Amendment) Bill.
Concern was also expressed about the provisions in the Bill relating to an employer's 'inability to pay' and the fear that changes urged by the Troika would see good employers disadvantaged by bad employers who use the provisions to gain competitive advantage when bidding for contracts.
