Paschal Donohoe cautions wage restraint, in favour of new jobs

Demands for increased wages in the transport sector have to be based on employers’ ability to pay – and must not become a barrier to providing additional jobs, Minister for Transport Paschal Donohoe has said.

Mr Donohoe also warned that while wage growth was desirable in restoring a “bruised” economy, it should not happen at a cost to those on low wages.

He rejected suggestions that he was a Minister without power because of the failure of the Dáil to elect a new taoiseach.

Speaking in advance of votes by the Luas workers on a possible resolution to their pay demands – and possible strike action by workers at Iarnród Éireann – Mr Donohoe said he had been “involved with” and supportive of recent Workplace Relations Commission efforts to broker a deal with Luas drivers and management.

He told RTÉ radio's This Week programme there should be a successor to the Lansdowne Road agreement, which technically runs until 2018.