A call by employers group Ibec for a pause on further increases in the national minimum wage and other labour policy measures planned by the Government has been branded “wrong and shameful” by the Irish Congress of Trade Unions (Ictu).
Ibec has claimed the policy changes will add more than €4 billion to the annual wage bill of Irish companies and risk “employment and business viability”.
In an open letter to the Taoiseach Leo Varadkar, Danny McCoy, Ibec chief executive, called on the Coalition to publish a full cost impact assessment of recent policy changes – including the minimum wage increase from €11.30 to €12.70 and the pending introduction of the pension auto-enrolment scheme among others – before April.
Ictu, which represents and campaigns on behalf of some 800,000 workers, said the call for a halt in progress on employment rights was “unacceptable and shouldn’t be tolerated”.
How does VAT in Ireland compare with countries across Europe? A guide to a contentious tax
‘I was a cleaner in my dad’s office, which makes me a nepo baby. I got €50 a shift’
Will we have a tax liability if Dad gives us his home while he is alive?
Finding a solution for a tenant who can’t meet rent after splitting with partner
“Many workers in Ireland remain seriously affected by the cost-of-living crisis,” said the group’s general secretary Owen Reidy.
“The minimum wage has increased this year but it should be remembered that this is merely playing catch up given previous increases were well below inflation.
“People must live as well as work in this economy and we expect the Government to continue with its commitment to introduce a living wage over the next period.”
Separately, the call from Ibec was described by Siptu, which represents more than 180,000 workers, as a “craven attempt” to row back on better conditions for workers.
Incoming Siptu deputy general secretary for the private sector Greg Ennis said: “It is incredible that Ibec seeks to place hundreds of thousands of low-paid workers to the back of the queue when it comes to getting a fairer share of the wealth that they produce.
“Many of these same workers were lauded by Ibec as essential during the pandemic and rightly recognised as frontline heroes.
“That has now been forgotten about as Ibec seeks to deny basic improvements in their wages and conditions in favour of the relentless drive to rinse more out of them in the pursuit of profit and shareholder dividends.”
Mr Ennis said lower-paid workers feel the impact of the cost-of-living crisis and high inflation on their livelihoods the most.
“They spend the largest percentage of their earnings on basics including rent and food,” Mr Ennis said.
“While the headline inflation rate is not rising as steeply, grocery inflation was running at 12 per cent for the last quarter of 2023. It is such significant increases in necessities which is impacting these workers the most.
“The reality is that Ireland, despite some modest improvements over the last number of years, still lags way behind the rest of Europe when it comes to sick pay, maternity pay and the ability of workers to collectively bargain with their employer for improvements.”
- Sign up for Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Find The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
