Workers across Ireland cannot be forced to bear the full brunt of a cost of living and energy crisis, the Irish Congress of Trade Unions has warned today.
With a two-week ceasefire announced last night, the organisation has said that Government must know Donald Trump cannot be relied on and serious pressures remain on cost of living, given the aftereffects of the closure of the Straits of Hormuz will be felt for some time. ICTU said that the consequences for workers' living standards and the wider economy could be severe.
ICTU has sought and secured a meeting of the Labour Employer Economic Forum to agree a coordinated national response to the crisis. The union body is also calling for immediate measures to ease pressure on workers, and longer term measures to increase resilience, including:
- Reductions in the cost of public services, including public transport.
- Greater flexibility from employers on remote and hybrid working arrangements to reduce commuting costs for workers.
- Improved data sharing between the Department of Social Protection and Revenue to ensure that support measures reach those who need them most.
- Scrapping the planned VAT reduction for the hospitality industry.
- Double indexation of tax bands in Budget 2027 to mitigate against failure to index in Budget 2026.
- Longer term phasing out of reliance on fossil fuels and increased emphasis on renewables.
Commenting, ICTU General Secretary Owen Reidy said:
Workers were already struggling with the cost of housing, fuel, food and childcare, and now they are facing an energy crisis that experts say is worse than anything we have seen in living memory. While the ceasefire announced last night is welcome, given how unreliable Donald Trump is, we cannot assume this crisis has passed. Government must work with trade unions and employers in formulating a response that supports families and workers.
The reality is that low and middle-income workers are hurting disproportionately. For many, wages that were already stretched are now simply not covering the basics. That is not a sustainable position for workers, for families, or for the economy.
The government is clearly not responsible for this crisis, but it will be responsible for the policy choices it makes in response to the crisis. We must see short and longer-term policy responses that prioritise the well-being and security of workers and citizens and not just business. If we do not see such policy responses workers and unions will have to resort to reviewing and increasing the parameters of pay bargaining across the economy.”
The current crisis also once again demonstrates the recklessness of Ireland’s continued reliance on fossil fuels. Right now, Irish people’s energy bills are at the whim of Donald Trump and events in the Middle East. Government must go faster in the move to renewable energy, in order to bring people’s bills down and secure Ireland’s energy independence.
A VAT cut for hospitality while workers are struggling to heat their homes and pay their bills is economic nonsense. That money must go directly to supporting workers and families, not into the pockets of McDonald’s and Burger King.
