IRISH COMPANIES make an average of €45,800 profit per employee or about twice the figure for British firms, a report produced by the country's second largest trade union, Unite, has claimed.
In an analysis of profits in Ireland, the union said there were no grounds for believing that these were too low or being squeezed by high wages. It said various methodologies all told the same story - that Ireland was a high-profit economy.
"Any suggestion by employers that their profits are coming under pressure is not backed up by independent data," it stated.
The publication of the Unite report today is timed to coincide with talks between the Government, unions and employers on a new pay deal.
Employers' group Ibec has called for a pay pause in the public sector, given the downturn in the Government's finances, while unions have said this would be unacceptable. Unions will be seeking the Government to spell out the scale of the economic problems which it faces and its proposals for dealing with them as part of social partnership.
Parties at the talks are expected to set out their positions today. The meeting is likely to be followed by bilateral engagements involving Government officials and unions and employers.
The report said that, based on CSO data, overall profit growth in the non-financial services sector had greatly outstripped wage growth by more than two to one.
It maintained that in the business services sector, profits had increased by nearly three-fold over wages.
"In total terms, profits in the sector increased by over €5.6 billion in the five-year period [2000 - 2005], while total wages - despite a substantial increase in employees [over 50,000] rose by well under half," it stated.
Unite said the transport and communications sector had experienced "extraordinary profit growth", outstripping wage growth by nearly seven -fold.
"The average enterprise in this sector experienced over 40 per cent profit growth during this period."
The report also said that profit growth in the wholesale/retail sector had outstripped wages by nearly two to one.
It said the global crisis had placed a strain on the financial sector, but that this should not detract from the fact that this was one of the most profitable areas of the economy.
"In gross terms, bank profits have increased by nearly two and a half times the rate of personnel costs. And lest anyone thinks that employees are sharing in these inflated profits, nearly 50 per cent of all employees in this sector earn below the average full-time wage with a small percentage officially categorised as low paid," it said.
The report said in the manufacturing sector, wages were declining as a proportion of the cost base. "Wages are low at less than 9 per cent. So when we hear debates about Ireland's high-cost base and an alleged squeeze on profits, let's remember, it has little to do with wages."
Unite regional secretary Jimmy Kelly said employers in Ireland paid some of the lowest wages in the EU.
"They justify this state of affairs by falsely claiming that their profits are being squeezed, that high costs and high wages are undermining competitiveness and productivity.
"We have found that profits are extraordinarily high throughout all sectors and all the while wage growth lags far behind."