AVERAGE HOURLY earnings for the 244,000 people employed in industry increased by 4.8 per cent in the year to the third quarter of 2007, according to earnings data released yesterday by the Central Statistics Office.
Over the year, average hourly earnings in industry advanced from €18.78 to €19.68.
The 82,000 employees in banking, insurance and finance fared less well. Average hourly earnings in the financial sector rose by just 2.3 per cent in the year to the third quarter of 2007, with earnings growth constrained by a decline in bonus payments.
However, employees in both industry and financial services saw their average hourly earnings decline between the second and third quarters of 2007, due to the paring back of bonus payments.
In the year to the third quarter of 2007, inflation, as measured by the Consumer Price Index, was running at 4.8 per cent.
When mortgage interest payments are excluded, the average level of prices increased 2.6 per cent in the year to the third quarter of 2007.
Both sides in the forthcoming pay talks will look to these data to support their stances. Trade unions will argue that pay increases in industry are barely matching price rises while pay growth in the financial sector is lagging far behind inflation.
Employers will counter that the Government has made special provision for those hit by higher mortgage interest rates. They will contend that once mortgage interest is excluded, pay increases in industry are comfortably exceeding the underlying rate of inflation.
Average hourly earnings include basic pay, overtime and irregular bonus payments. Excluding bonus payments, regular average hourly earnings increased by 3.9 per cent in industry and by 3.5 per cent in financial services in the year to the third quarter of 2007.
Over the past year, bonus payments increased in industry, raising average hourly earnings growth to 4.8 per cent. However, in banking, insurance and finance, bonus payments fell from €1.71 an hour in the third quarter of 2006 to €1.45 in the third quarter of 2007, a decline of 15 per cent. It was this decline in bonus payments that restricted the growth in overall hourly earnings to 2.3 per cent in the financial sector over the past year.
However, employees in both industry and financial services saw their average hourly earnings fall between the second and third quarters of 2007 due to a decline in bonus payments.
Average hourly earnings in industry declined from €19.82 in the second quarter of 2007 to €19.68 in the third quarter as hourly bonus payments were reduced from 85 cent to 68 cent.
For employees in financial services, overall average hourly earnings declined from €32.57 in the second quarter of last year to €27.16 in the third quarter, with hourly bonus payments pruned from €7.00 in the second quarter to just €1.45 in the third quarter.
