Congress has advised affiliated unions in the private sector to seek pay increases in 2017 'that would see basic pay rise by at least €1000 annually, or 4% - whichever figure is higher."
The Chair of the Congress Private Sector Committee John Douglas said: "People have seen living standards fall or stagnate over recent years. The best way to address this is through wage increases and we now expect to see claims being lodged along these lines."
The Congress Private Sector Bulletin advises affiliate unions that Congress has "monitored pay bargaining developments over the course of 2016...and trends across a range of key measures that impact on the living standards of workers.
"While some progress has been made in recouping earnings lost in the financial crisis, data shows there is still some considerable ground to be made up."
The Bulletin says that a number of key considerations have been taken into account in formulating the claim, namely:
- The general level of earnings in the economy and the share received by workers,
- Projected increases in rates of price inflation,
- Projected increases in productivity,
- Profit levels in private sector companies.
The Congress Bulletin says Ireland's "wage share" remains low when compared to the UK, US and the EU. It forecasts inflation of 2% in 2017, estimates labour productivity will grow by 1.5%.
When seeking increases, private sector unions are urged to "have regard for the policy of Congress on achieving over time as a minimum, a wage of €11.50 per hour for every worker."
The Bulletin advises that pay claims in the sector should also take account of hours of work and the necessity to ensure workers have "reasonable weekly contracted hours" that give some certainty over their work schedule.
